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US Trade Deficit Widens on Largest Jump in Imports Since 2022

Members of the media watch as a container ship departs from the Port of Manzanillo in Manzanillo, Colima state, Mexico, on Tuesday, Nov. 19, 2024. Mexican President Claudia Sheinbaum is taking steps to cooperate with the US on issues like curbing migration and reducing Chinese imports, while avoiding openly taking sides in the global trade war. (Mayolo Lopez Gutierrez/Bloomberg)

(Bloomberg) -- 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% from the prior month to $78.2 billion, Commerce Department data showed Tuesday. The figure was in line with the median projection of economists in a Bloomberg survey.

The value of imports increased 3.4% from a month earlier to $351.6 billion. Exports rose 2.7%. 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.

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 $96.5 billion in November.

Digging Deeper

  • Travel exports — or spending by visitors to the US — rose to a record $18.6 billion in November
  • Travel imports — a measure of Americans traveling abroad — also hit a fresh record
  • The US merchandise-trade deficit with China was little changed at a seasonally adjusted $25.4 billion
  • The goods shortfall with Mexico was also little changed from a month earlier, while the deficit with Canada widened

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