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The US trade deficit narrowed to its lowest level since 2009 in October, as Donald Trump’s tariffs continued to prompt fluctuations in imports.

The gap between imports and exports of goods fell 39 per cent from the previous month, to $29.4bn, according to data released by the US Department of Commerce on Thursday. 

That reduced the deficit to its narrowest level in more than 16 years, and was also much narrower than the $59.8bn predicted by economists polled by Reuters. 

The 3.2 per cent drop in imports was mostly fuelled by pharmaceutical products. The US president threatened tariffs on the pharmaceutical sector throughout 2025, prompting companies to boost their imports of those goods after he returned to the White House in January.

However, beginning in late September, Trump forged a series of deals with drugmakers that would provide them with exemptions from new duties.

Exports climbed 2.6 per cent.

The lower-than-expected trade deficit for October is likely to provide a tailwind for economic growth figures in the fourth quarter.

Additional reporting by Patrick Temple-West