The United States trade deficit surged in November, driven by the largest increase in imports since March 2022. This development has been largely attributed to businesses expediting shipments to avoid potential disruptions from a looming dockworkers’ strike and prospective tariffs by the Trump administration, as noted in a Bloomberg report.

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According to data released by the Commerce Department, the trade gap in goods and services swelled by 6.2% from the preceding month, reaching $78.2 billion. This figure aligns with the median forecast of economists surveyed by Bloomberg. The value of imports rose by 3.4% to $351.6 billion, while exports experienced a 2.7% increase. These figures are not adjusted for inflation.

The broad-based import surge included consumer goods, capital equipment, and motor vehicles. This trend reflects US companies’ strategic move to secure shipments in anticipation of potential trade barriers and disruptions. The looming mid-January deadline for dockworkers to reach a deal only heightened these concerns.

The latest trade figures follow a deceleration in demand for foreign merchandise in October, as companies made efforts to stock up ahead of the holiday shopping season. The impact of goods and services trade on the third-quarter gross domestic product was negative, and similar effects are likely for the final quarter of 2024.

As per IndexBox, the continuous challenges faced by US manufacturers and service providers, such as frail overseas economies and a robust dollar, threaten to perpetuate the widening trade gap through this year. Furthermore, the inflation-adjusted merchandise trade deficit expanded to $96.5 billion in November, underscoring the challenges confronting the US trade sector.

Source: IndexBox Market Intelligence Platform