US Goods Trade Deficit Narrows in January

The US goods trade deficit narrowed to $80.8 billion in January 2026 from $98.5 billion in the previous month. This marks the smallest deficit since October 2025, as exports rose while imports dropped. Exports grew 8.2% month-on-month to $194.8 billion, mainly driven by increased shipments of industrial supplies (15.1%) and capital goods (8.8%). Exports of foods, feeds, and beverages (4.7%) and other goods (37.1%) also went up. These largely offset declines in exports of consumer goods (-12.1%) and automotive vehicles, etc. (-6.0%). Meanwhile, imports fell 1.1% to $275.6 billion, amid reduced purchases of consumer goods (-5.8%), industrial supplies (-2.7%), and automotive vehicles, etc (-8.3%), which more than offset increases in imports of capital goods (3.1%), foods, feeds, and beverages (0.8%), and other goods (7.3%).

The US goods trade deficit widened markedly to $98.5 billion in December 2025, up 19.0% from a revised $82.8 billion shortfall in November and well above market expectations of $86 billion. It marked the largest goods deficit since July. Imports rose 3.8% to $278.6 billion, driven by a 15.9% surge in industrial supplies. Purchases of capital goods increased 5.5%, while automotive vehicle imports climbed 3.9%. Meanwhile, exports fell 3.0% to $180.0 billion, weighed down primarily by a 12.3% drop in industrial supplies shipments. For 2025 as a whole, the US goods trade deficit widened to $1.23 trillion from $1.20 trillion in 2024.

The US trade deficit in goods narrowed by $17.3 billion from the previous month to $85.5 billion in August 2025, well below the market expectations of $95.65 billion, according to an advance estimate. Imports fell 7.0% month-on-month to $261.6 billion, driven by declines in industrial supplies (-18.9% to $49.4 billion), foods and beverages (-8.7% to $16.9 billion), consumer goods (-6.4% to $55.1 billion), and capital goods (-4.4% to $92.0 billion). In contrast, imports rose for other goods (6.9% to $13.7 billion) and automotive vehicles (1.7% to $34.5 billion). Meanwhile, exports fell 1.3% to $176.1 billion, weighed down by declines in industrial supplies (-1.4% to $59.3 billion), consumer goods (-6.8% to $21.2 billion), other goods (-2.1% to $8.5 billion), and automotive vehicles (-3.0% to $12.7 billion), partly offset by gains in capital goods (1.1% to $60.6 billion) and foods and beverages (0.3% to $13.8 billion).