In October last year, the U.S. trade deficit fell to a 16-year low. The tariff policy of U.S. President Donald Trump appears to have had a significant impact.
According to the U.S. Department of Commerce on the 8th (local time), the U.S. trade deficit in October last year was $29.4 billion (about 42.7064 trillion won), down 39% from the previous month. This is the smallest figure since the $27.2 billion deficit recorded in June 2009.
Exports were $302 billion, up $7.8 billion (2.6%) from the previous month. Imports were $331.4 billion, down $11 billion (3.2%) over the same period.
The item that had the greatest impact on narrowing the deficit was pharmaceutical manufacturing materials. Imports of pharmaceutical manufacturing materials fell by $14.3 billion. This was the smallest import level since July 2022.
This is analyzed to be because U.S. drugmakers stocked up in advance ahead of the imposition of drug tariffs. President Trump said in October last year that he would impose a 100% item tariff on pharmaceuticals.
However, imports of capital goods increased instead. As investment in data center facilities grew, imports of related products increased.
By country, the largest trade deficit was with Mexico. The trade deficit with Mexico was $17.9 billion. It was followed by Taiwan ($15.7 billion), Vietnam ($15.0 billion), China ($13.7 billion), and the European Union ($6.3 billion).