The U.S. trade deficit shrank in October to its lowest level since 2009, according to Commerce Department data released Thursday, as President Donald Trump’s tariffs disrupted international trade more than expected.
Key data
The trade deficit — a measure that reflects when the cost of a country’s imports exceeds the value of its exports — narrowed to $29.4 billion in October, the narrowest gap since June 2009 and a 39% drop from September ($48.1 billion), the Bureau of Economic Analysis reported.
Imports decreased 3.2% in the month, to $331.4 billion from September, while exports increased 2.6% and reached $302 billion, according to the agency.
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Wall Street expected the trade gap to widen to $60.6 billion, according to FactSet.
The effective tariff rate imposed by the United States was 17.9% in October, the highest since 1934, according to the Budget Lab at Yale University.
What to observe
The Supreme Court is reportedly expected to issue rulings as soon as this Friday on the legality of Trump’s “Liberation Day” tariffs. During oral arguments in November, justices were skeptical of Trump’s ability to impose these levies, including some conservative-leaning justices who questioned whether the president could enforce the tariffs under the International Emergency Economic Powers Act, which allows presidents to implement economic sanctions during national emergencies.
This article was originally published on Forbes US
