PULSE POINTS
WHAT HAPPENED: The U.S. trade deficit fell 10.9 percent in September to $52.8 billion, reflecting significant changes in trade flows under President Donald J. Trump’s tariff policies.
WHO WAS INVOLVED: The Trump administration, U.S. businesses, and trading partners, including China.
WHEN & WHERE: September 2025, with data released by the Commerce Department on Thursday.
IMPACT: U.S. exports surged 3.0 percent, while real imports rose modestly by 0.7 percent, indicating a rebalancing of trade flows.
IN FULL
The United States trade deficit fell sharply in September, declining 10.9 percent to $52.8 billion as President Donald J. Trump’s tariffs continue reshaping global trade flows. The Commerce Department released the data on Thursday, showing a significant shift in the trade balance.
Exports rose 3.0 percent to $289.3 billion, while imports increased by just 0.6 percent to $342.1 billion. This marks the kind of trade balance adjustment the Trump administration has pursued, with American goods finding stronger markets abroad and foreign imports moderating.
In inflation-adjusted terms, the real goods deficit fell by 5.6 percent, with real exports of goods climbing 4.2 percent and real imports edging up 0.7 percent. Administration officials argue this demonstrates a genuine change in trade volumes, not just price fluctuations, as they pursue a strategy of reciprocal trade policies to enhance American competitiveness.
The export surge was led by industrial supplies and consumer goods, including non-monetary gold and pharmaceuticals. Critics had warned that tariffs would provoke retaliation against U.S. exporters, but the data show exports reaching their highest levels in months. Imports, meanwhile, showed a mixed picture, with pharmaceutical imports rising but capital goods such as computers declining sharply.
The bilateral trade deficit with China narrowed by $4.0 billion to $11.4 billion in September, as Chinese imports fell and U.S. exports to China rose slightly.
The United States trade deficit fell sharply in September, declining 10.9 percent to $52.8 billion as President Donald J. Trump’s tariffs continue reshaping global trade flows. The Commerce Department released the data on Thursday, showing a significant shift in the trade balance.
Exports rose 3.0 percent to $289.3 billion, while imports increased by just 0.6 percent to $342.1 billion. This marks the kind of trade balance adjustment the Trump administration has pursued, with American goods finding stronger markets abroad and foreign imports moderating.
In inflation-adjusted terms, the real goods deficit fell by 5.6 percent, with real exports of goods climbing 4.2 percent and real imports edging up 0.7 percent. Administration officials argue this demonstrates a genuine change in trade volumes, not just price fluctuations, as they pursue a strategy of reciprocal trade policies to enhance American competitiveness.
The export surge was led by industrial supplies and consumer goods, including non-monetary gold and pharmaceuticals. Critics had warned that tariffs would provoke retaliation against U.S. exporters, but the data show exports reaching their highest levels in months. Imports, meanwhile, showed a mixed picture, with pharmaceutical imports rising but capital goods such as computers declining sharply.
The bilateral trade deficit with China narrowed by $4.0 billion to $11.4 billion in September, as Chinese imports fell and U.S. exports to China rose slightly.
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