US trade returns to wider deficit in November as imports rise

WASHINGTON: The US trade deficit sharply widened in November as imports picked up, according to government data released Thursday, reversing an unexpectedly big pullback in the prior month lauded by President Donald Trump.

The trade gap surged by 94.6 percent in November to $56.8 billion, Commerce Department data showed, bringing it close to levels seen in June and August last year.

The shift reflected fluctuations in goods like gold and pharmaceuticals, in a year already marked by major swings in trade due to Trump’s sweeping tariffs.

In November, US imports increased by 5.0 percent to $348.9 billion, while exports slipped 3.6 percent to $292.1 billion.

READ MORE; US trade gap shrinks to smallest since 2009 as imports fall

Analysts generally expected the deficit to grow, but Thursday’s expansion was more than the $42.9 billion projected by surveys of Dow Jones Newswires and The Wall Street Journal.

Earlier this month, Trump was quick to tout a plunge in the trade deficit to its lowest since 2009, attributing it – and the country’s economic growth – to the success of his tariffs.

But economists have noted that the export rise in October, which helped narrow the deficit, was significantly influenced by trade in gold.

Pharmaceuticals were also a major contributor to declining imports that month.

‘Historically normal’

After October’s “remarkably narrow” deficit, the gap expanded “to a more historically normal” level in November, said Nationwide financial market economist Oren Klachkin.

Trade in the fourth quarter of 2025 has seen massive swings on a few key drivers, Klachkin added.

These included sharp moves in just a few components like precious metals, a return to normalcy after trade ramp-ups to avoid tariffs, and strong imports fueled by AI investment, he said.

KPMG senior economist Meagan Schoenberger added: “The boomerang in the trade deficit from October to November was large, but not surprising.”

“High-frequency data from the end of the year showed healthier imports going into December, meaning that the narrowing of the trade deficit we have experienced in the wake of the front-running of tariffs may be fading,” she warned.

This also signals that easier supply chain adjustments, including shifts towards domestic manufacturers, have taken place, she said.

US trade figures have been heavily swayed by Trump’s tariffs in the past year, as companies rushed to stock up on inventory ahead of planned hikes in levies.

In November, goods exports dropped $11.1 billion. Among categories, industrial supplies and materials fell – including nonmonetary gold.

Goods imports picked up by $16.8 billion, with increases seen in consumer products, and capital goods such as computers and semiconductors, the Commerce Department said.