US October trade deficit lowest since 2009 as imports decline

WASHINGTON, Jan 8 (Reuters) – The U.S. trade deficit contracted sharply in October, hitting the lowest level since mid-2009 as imports declined, a trend that if sustained could see trade again adding to economic growth in the fourth quarter.

The trade gap narrowed 39.0% to $29.4 billion, the lowest level since June 2009, the Commerce Department‘s Bureau of Economic Analysis and Census Bureau said on Thursday.

Economists polled by Reuters had forecast the trade deficit rising to $58.9 billion. The report was delayed because of the 43-day shutdown of the government.

Imports decreased 3.2% to $331.4 billion. Goods imports tumbled 4.5% to $255.0 billion, the lowest level since June 2023. The decline in imports could be the result of President Donald Trump’s sweeping tariffs. The drop also suggests softening domestic demand.

Imports of industrial supplies dropped $2.7 billion to the lowest level since February 2021, mostly reflecting a $1.4 billion decline in nonmonetary gold, which is excluded in the calculation of gross domestic product.

Consumer goods imports decreased $14.0 billion to the lowest level since June 2020, pulled down by a $14.3 billion drop in pharmaceutical preparations. But imports of capital goods increased $6.8 billion, boosted by computer accessories, telecommunications equipment and computers, likely linked to artificial intelligence investment.

Exports rose 2.6% to a record $302.0 billion in October. Goods exports jumped 3.8% to $195.9 billion, also an all-time high. They were boosted by exports of nonmonetary gold and other precious metals. But exports of consumer goods, mostly pharmaceutical preparations, fell as did those of other goods.

The goods trade deficit compressed 24.5% to $59.1 billion, the lowest level since March 2016. Exports and imports of services were both the highest on record.

There have been large swings in the trade deficit amid Trump’s protectionist trade policy. Trade contributed to GDP growth in the second and third quarters of 2025.

The Atlanta Federal Reserve is currently forecasting GDP increasing at a 2.7% annualized rate in the fourth quarter. The economy grew at a 4.3% pace in the July-September quarter.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)