The U.S. trade deficit narrowed to $105.0 billion in September from $105.7 billion in August, the Commerce Department said Wednesday. The joint release from the Bureau of Economic Analysis and the Census Bureau shows a drop of $0.7 billion, or 0.7%, in the gap between what the country buys from abroad and what it sells. Both exports and imports rose.
Why did the gap shrink while trade grew?
Exports rose $5.8 billion, or 1.9%, to $321.5 billion in September, and imports rose $5.2 billion, or 1.2%, to $426.6 billion, according to the release. Exports grew a little more than imports in dollar terms, which is why the gap narrowed. The goods deficit fell $0.7 billion to $135.9 billion, and the services surplus slipped by less than $0.1 billion to $30.9 billion.
The August figure was revised. The first estimate, published by the Census Bureau, put the August deficit at $105.6 billion, up $12.7 billion from $92.8 billion in July. The September release now carries August at $105.7 billion, after exports and imports were each revised up.
Do trade numbers change the prices people pay?
The release itself says nothing about consumer prices, and a monthly gap of $105.0 billion does not translate into a number on a household bill. What it shows is the volume and mix of goods coming in, and the tariffs placed on those goods are the part shoppers can end up paying. Computers, computer accessories and pharmaceutical preparations were among the categories that rose in September.
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The tariff picture has shifted this year. The Associated Press, in a report carried by GV Wire, said the Supreme Court struck down many of President Donald Trump’s tariffs in February, ruling that he had misused an emergency law. The administration has since set lower tariffs of 10% to 12.5% on many products, and officials could announce new tariffs in the coming weeks and months.
Officials have blamed disruptions to their tariff plan for the August increase in the deficit. The administration has treated the deficit as a sign of weakness in manufacturing and has tried to shrink it with tariffs, though the report questioned how much tariffs alone can reduce it given economic growth, rising government deficits and continued consumer spending on foreign goods.
What drove the numbers?
Goods exports rose $5.1 billion to $211.0 billion, led by capital goods, which rose $3.8 billion, including computers and civilian aircraft. Foods, feeds and beverages added $1.9 billion, including a $1.3 billion rise in soybeans. Nonmonetary gold fell $3.4 billion.
On the import side, goods imports rose $4.4 billion to $346.9 billion. On a Census basis, imports rose $8.0 billion, led by capital goods, which jumped $11.6 billion, including computers up $7.6 billion and computer accessories up $5.7 billion. Pharmaceutical preparations rose $2.9 billion. Semiconductors fell $1.2 billion.
The gap between the two measures has a technical cause. The release says the Census-basis goods deficit rose while the balance-of-payments goods deficit fell in September because of how nonmonetary gold is treated in the national accounts.
Which countries run the biggest gaps?
The largest goods deficits on a Census basis in September were with Mexico at $28.7 billion, Vietnam at $25.3 billion, Taiwan at $21.9 billion and China at $17.9 billion. The European Union followed at $14.2 billion, then South Korea at $12.2 billion and Germany at $7.9 billion. The U.S. ran surpluses with the Netherlands at $7.7 billion, South and Central America at $6.2 billion and the United Kingdom at $3.0 billion.
The deficit with Taiwan rose $3.6 billion, and the deficit with the European Union rose $3.2 billion to $14.2 billion as imports climbed $2.6 billion. The deficit with Canada fell $2.7 billion to $4.4 billion, with imports down $3.0 billion.
Is the broader trend still wider than a year ago?
The three-month average tells a different story from the one-month dip. The average deficit for the period ending in September rose $11.3 billion to $101.2 billion, and it was $36.5 billion wider than a year earlier. Through the first nine months of the year, though, the deficit was $92.4 billion, or 12.2%, smaller than in the same period of 2025, while exports rose 11.6% and imports rose 6.2%.
That year-to-date cushion has been shrinking. Through August, the Census Bureau’s release showed the deficit $138.2 billion, or 19.9%, below the same period of 2025, so the September data cut the year-to-date improvement by about $46 billion. Adjusted for price changes, the real goods deficit rose $3.5 billion, or 3.0%, to $119.5 billion in September, with real exports up 0.1% and real imports up 1.4%.
August’s reading drew attention for its size. The AP called it a 17-month high and the largest monthly deficit since before Trump’s global tariffs took effect in April 2025, with imports of petroleum, gold and AI chips up. It said companies were importing large numbers of computer chips, mostly made in Asia, to build data centers. August imports hit a record $420.8 billion, up 4.3% from July, and exports rose 1.4% to $315.2 billion.
The next release, covering October, is scheduled for Tuesday, Dec. 8.
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
