The trade deficit in the United States widened in November, likely due to concerns among businesses about President-elect Donald Trump’s proposed tariffs on foreign goods. This led to an increase in imports, despite a surge in exports to a record high. If the trend of rising imports continues into December, it could negatively impact economic growth in the fourth quarter.
Analysts suggest that importers are ramping up their purchases to stockpile goods before the new administration takes office. The trade gap expanded by 6.2% to $78.2 billion in November, with imports rising by 3.4% to $351.6 billion. Various sectors saw increases in imports, including industrial supplies, materials, and capital goods.
On the export side, there was a 2.7% increase to $273.4 billion, driven by exports of industrial supplies, materials, and motor vehicles. Goods exports rose by 3.6% to $177.6 billion, with notable gains in various categories. The overall goods trade deficit widened by 5.5% to $103.4 billion.
While exports hit a record high and may provide a slight boost to GDP, the continued high level of imports could offset these gains. Economists anticipate that imports will remain elevated in December, potentially leading to trade having a negative impact on GDP for the fourth consecutive quarter.
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