US Trade Deficit Falls to Lowest Level Since 2009

The US trade deficit narrowed sharply in October 2025, reaching its lowest level in more than 16 years as imports declined, a development that could help support economic growth in the final quarter of the year if the trend persists.

Data released on Thursday by the Commerce Department’s Bureau of Economic Analysis and Census Bureau showed the trade gap shrinking by 39.0% to $29.4 billion, the smallest deficit recorded since June 2009. The report’s publication had been delayed due to a 43-day government shutdown.

Imports fell 3.2% to $331.4 billion, while goods imports declined 4.5% to $255 billion, their lowest level since June 2023.

The pullback in imports is widely seen as a result of the broad-based tariffs imposed by President Donald Trump, as well as a sign of cooling domestic demand.

Imports of industrial supplies dropped by $2.7 billion, hitting their lowest level since February 2021. Much of the decline reflected a $1.4 billion fall in non-monetary gold imports, which are excluded from gross domestic product calculations.

Consumer goods imports plunged by $14 billion, the weakest level since June 2020, largely due to a $14.3 billion decline in pharmaceutical imports.

In contrast, imports of capital goods rose by $6.8 billion, driven by higher purchases of computer accessories, communications equipment, and computers, an increase economists link to ongoing investment in artificial intelligence and digital infrastructure.

Exports provided a counterbalance, rising 2.6% to a record $302 billion in October.

Goods exports jumped 3.8% to $195.9 billion, also an all-time high, supported by stronger shipments of non-monetary gold and other precious metals.

However, exports of consumer goods, primarily pharmaceuticals, declined, alongside a drop in other miscellaneous exports.

The goods trade deficit narrowed 24.5% to $59.1 billion, the lowest level since March 2016, while both exports and imports of services reached record highs.

Trade flows have been volatile under the Trump administration’s protectionist trade agenda, but net trade contributed positively to GDP growth in the second and third quarters of 2025.

The Federal Reserve Bank of Atlanta currently estimates US economic growth at an annualized rate of 2.7% in the fourth quarter, following a robust 4.3% expansion between July and September.