The U.S. trade deficit with other countries fell to $29.4 billion in October, an $18.8 billion decline from September as President Trump uses tariffs to trim imports of foreign goods and bolster exports from American firms.
It was the lowest monthly trade deficit figure since 2009, according to Commerce Department data.
Mr. Trump will relish the narrowing trade deficit.
For years, he’s bemoaned the gap between the high number of products that foreign firms sell to Americans and the much smaller amount of U.S. goods those countries buy in return.
He is using tariffs, or duties on foreign goods, to make foreign goods less attractive and compel firms to make their products in the U.S. to avoid tariffs.
“The October trade deficit dropping to the lowest level since 2009 is yet another sign that President Trump’s policies continue to deliver,” White House spokesman Kush Desai said in a statement. “Economic growth is accelerating, trillions in investments to make and hire in America are pouring in, and American exports are surging, thanks to the President’s trade deals and pro-growth policies.”
The trade deficit from January to October was still up 7.7%, year over year, because of a surge in imports earlier in the year. Firms were rushing to get ahead of Mr. Trump’s tariff plan and avoid higher costs.
October exports totaled $302.0 billion, or $7.8 billion more than September exports.
Imports for October totaled $331.4 billion, or $11 billion less than in September.
Critics of Mr. Trump’s tariff plan say the duties amount to a tax on American companies that bring foreign goods to their customers. Sometimes, firms pass along the costs in the form of higher prices.
Some analysts also believe Mr. Trump overemphasizes the importance of trade deficits, saying some countries produce unique goods that Americans want, or that acquiring cheap foreign goods benefits both U.S. consumers and foreign producers.
The Supreme Court is considering a case that could jar Mr. Trump’s tariff plans.
Blue states and small businesses said Mr. Trump overstepped by using a 1977 law to impose blanket tariffs on other nations.
Key justices were skeptical of the administration’s position during oral argument, saying Congress is typically granted the power to generate revenue.
A ruling against the Trump team could result in billions of dollars in tariff refunds.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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