US trade gap falls to its lowest point in 16 years as gold rush boosts exports and imports decline

U.S. Trade Deficit Drops to Lowest Level Since 2009

According to a government announcement on Thursday, the U.S. trade deficit narrowed sharply in October, falling to $29.4 billion from $48.1 billion in September. The release of this data had been postponed due to the recent federal government shutdown.

This significant reduction in the trade gap was driven by a notable rise in American exports alongside a decrease in imports. The last time the trade deficit reached such a low point was back in 2009.

Highlights from the Report

• Exports increased by 2.6% in October.
• There was a substantial boost in shipments of industrial materials abroad.
• A surge in gold exports was a major contributor, as earlier in the year, investors had imported large quantities of gold into the U.S. amid concerns about potential tariffs on the precious metal.