The U.S. September trade deficit narrowed to $105 billion, with imports hitting a record high.

The U.S. Census Bureau and Bureau of Economic Analysis jointly released a report on November 4 showing that the U.S. goods and services trade deficit in September was $105 billion, narrowing by $700 million, or 0.7% month-on-month, from the revised $105.7 billion in August. The August deficit was slightly revised upward from the initially reported $105.6 billion. For the month, exports were $321.5 billion, up 1.9% month-on-month and the highest since May; imports were $426.6 billion, up 1.2% month-on-month and the highest since the series began in 1992. The goods deficit decreased by $700 million to $135.9 billion, while the services surplus decreased by less than $100 million to $30.9 billion. Imports were led by capital goods. The report showed that in September, capital goods imports increased by $11.6 billion, of which computers rose by $7.6 billion and computer accessories by $5.7 billion, while semiconductors fell by $1.2 billion; consumer goods imports increased by $2.4 billion, with pharmaceutical preparations up $2.9 billion; industrial supplies imports decreased by $3.7 billion, with nonmonetary gold down $2.7 billion and crude oil down $1.3 billion. On the export side, capital goods increased by $3.8 billion, and foods, feeds, and beverages rose by $1.9 billion, of which soybeans increased by $1.3 billion. By country and region, the deficit with Taiwan expanded by $3.6 billion to $21.9 billion, with imports from Taiwan up $4.2 billion; the deficit with the European Union widened by $3.2 billion to $14.2 billion; the deficit with Canada narrowed by $2.7 billion to $4.4 billion. The two measures moved in opposite directions. On the Census Bureau's nominal basis, the September goods deficit expanded by 2.2% month-on-month, inconsistent with the narrowing direction under the balance of payments basis, with the difference mainly stemming from the balance of payments adjustment for nonmonetary gold imports. In 2017 constant dollars, the real goods deficit expanded by $3.5 billion to $119.5 billion, an increase of 3.0%; real goods exports rose only 0.1%, while nominal goods exports on the same basis rose 2.5%, with the gap mainly reflecting price factors. Although the deficit narrowed month-on-month, it remained the second-highest since March 2025, trailing only August. Year-on-year, the September deficit widened by 76.9% from $59.4 billion a year earlier, with exports up 10.0% year-on-year and imports up 21.3% year-on-year; the cumulative deficit for the first nine months narrowed by 12.2% year-on-year. The expansion of the real goods deficit means net exports continued to be a drag in the third-quarter GDP calculation.