US trade deficit narrows slightly in September; imports race to record high

The US trade deficit narrowed slightly in September even as robust domestic demand boosted imports to a record high.

The trade shortfall contracted 0.7 percent to US$105.0 billion (HK$819 billion), the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Wednesday. Economists polled by Reuters had forecast the deficit at US$108.0 billion.

The trade deficit has remained large despite President Donald Trump's aggressive tariffs. The government estimated last week that imports subtracted 2.64 percentage points from gross domestic product growth in the third quarter, the most since the first quarter of 2025, when businesses were front-loading orders after Trump's sweeping tariffs.

The economy grew at a 3.4 percent annualized rate in the July–September quarter, the government said in its advance estimate of GDP last week. Trade has not contributed to GDP growth for four straight quarters. Resilient consumer spending and an artificial intelligence investment frenzy account for the strength in domestic demand.

Imports increased 1.2 percent to US$426.6 billion in September, a record high. Goods imports rose 1.3 percent to an all-time high of US$346.9 billion. Exports advanced 1.9 percent to US$321.5 billion. Goods exports increased 2.5 percent to US$211.0 billion.

Reuters

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