U.S. trade deficit narrows in September as tariffs weigh on imports

The U.S. trade deficit in goods and services fell more than 10 percent from August to September, shrinking to $52.8 billion — its lowest monthly level since June 2020 — as tariffs imposed by the Trump administration continued to weigh on trade, the Commerce Department said. Imports rose 0.6 percent to $342.1 billion while exports increased 3 percent to $289.3 billion, and because exports grew faster the deficit narrowed.

For the year through September, Census Bureau data show the trade deficit is up more than 17 percent from the same period in 2024, with exports up 5.2 percent and imports up 7.7 percent. The administration has imposed sweeping tariffs this year on imports including cars, metals and furniture, and ended the “de minimis” exemption on Aug.

29. After the tariffs took effect on Aug. 7 imports sharply slowed and then recovered somewhat in September; some firms have relied on earlier stockpiles to delay new imports. Trade experts warned against drawing firm conclusions from a few months of data. Brad Setser of the Council on Foreign Relations said the data showed “unambiguous weakness” in U.S.

imports and that it was too early to say whether the change reflected payback from front‑running or the start of a tariff effect.

Key Topics

Business, U.s. Trade Deficit, Trump Tariffs, Imports, Exports, Brad Setser