September Trade Deficit Narrows to Lowest Since Mid-2020 as Exports Jump, Delayed Data Show

03:39 PM EST, 12/11/2025 (MT Newswires) -- The US trade deficit narrowed in September to its smallest since mid-2020 amid a stronger increase in exports than imports, delayed government data showed Thursday.

The goods and services deficit reduced about 11% sequentially to $52.83 billion in September on a seasonally adjusted basis, the Census Bureau and the Bureau of Economic Analysis said. That's the lowest monthly deficit recorded since June 2020, the data showed. The consensus was for a deficit of $63.1 billion in a Bloomberg-compiled survey.

"A stronger rise in exports than imports in September narrowed the trade deficit, with some of the impact due to movements in gold," Oxford Economics Associate Economist Grace Zwemmer said in remarks e-mailed to MT Newswires. "September's report suggested net trade contributed 1.6 (percentage points) to (third-quarter gross domestic product) growth."

Exports increased 3% to $289.31 billion -- the highest since April -- while imports grew 0.6% to $342.13 billion. Services imports reached $75.52 billion in September, the highest on record, according to official data.

Imports of consumer goods increased sequentially for the month, but are down on an annual basis, according to Oxford Economics. "Despite entering peak holiday shipping season, we expect the frontloading from earlier this year will keep consumer goods import growth muted," Zwemmer wrote.

The latest trade report was delayed due to a 43-day-long record US federal government shutdown that ended last month. President Donald Trump's sweeping tariffs took effect in August. In November, the US Supreme Court heard arguments on the legality of Trump's import duties.

The goods trade deficit with China narrowed to $11.36 billion in September from the previous month's $15.37 billion, official data showed Thursday. The trade gap widened to $4.9 billion from $3.05 billion with Canada. The deficit with the European Union surged to $17.83 billion from $8.08 billion, according to the report.

"While we await more information regarding the release of the October trade report, data from major US trading partners suggests imports increased in October," Zwemmer said. "This could signal a widening of the trade deficit at the start of (the fourth quarter)."

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