US trade deficit widens in November, but tracking to be neutral on Q4 growth

Wells Fargo Research Team Wells Fargo

Summary

The U.S. trade deficit widened in November amid a faster gain in imports than exports. There were still some data collection quirks in Canada influencing the November data, but the recent trend is consistent with a broad gain in trade flows ahead of potential Trump Administration tariffs this year.

Widening deficit: Calm before tariff storm?

The U.S. international trade deficit widened to $78.2 billion in November. While exports increased a solid 2.7% over the month, it was not enough to outpace imports, which rose 3.4%. In dollar terms, imports rose $11.6 billion, or the most in two and a half years. There looks to be some payback from an unusually weak October, when every major category of end-use goods declined, but overall import gains were fairly broad based.

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Wells Fargo Research Team

Wells Fargo

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