US trade deficit widens on largest jump in imports since 2022
The value of imports increased 3.4% from a month earlier to US$351.6 billion
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THE US trade deficit widened in November, reflecting the biggest jump in imports since March 2022 as companies accelerated shipments ahead of a possible dockworkers’ strike and in anticipation of potential tariffs by the Trump administration.
The gap in goods and services trade grew 6.2 per cent from the prior month to US$78.2 billion, Commerce Department data showed on Tuesday (Jan 7). The figure was in line with the median projection of economists in a Bloomberg survey.
The value of imports increased 3.4 per cent from a month earlier to US$351.6 billion. Exports rose 2.7 per cent. The figures aren’t adjusted for inflation.
The jump in imports was broad, including increases in consumer goods, capital equipment and motor vehicles, likely reflecting a preference by US companies to secure shipments in advance of potential tariffs. Moreover, many are hoping to mitigate disruptions from a potential strike by dockworkers with a mid-January deadline to reach a deal.
The figures follow an October downshift in demand for foreign merchandise after companies doubled up efforts to ensure they were well-stocked ahead of holiday-shopping season.
Goods and services trade in the third quarter subtracted from gross domestic product, and the latest net exports figures suggest a similar impact is possible in the final three-month period of 2024.
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US manufacturers, as well as service providers, remain challenged by weak overseas economies and a strong dollar that risk keeping the trade gap wide this year.
On an inflation-adjusted basis, the merchandise trade deficit widened to US$96.5 billion in November.
- Travel exports – or spending by visitors to the US – rose to a record US$18.6 billion in November.
- Travel imports – a measure of Americans travelling abroad – also hit a fresh record.
- The US merchandise-trade deficit with China was little changed, at a seasonally adjusted US$25.4 billion.
- The goods shortfall with Mexico was also little changed from a month earlier, while the deficit with Canada widened. BLOOMBERG
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