WASHINGTON: The US trade deficit sharply widened in November as imports picked up, according to government data released Thursday, reversing an unexpectedly big pullback in the prior month that was lauded by President Donald Trump.
The trade gap surged by 94.6% in November to US$56.8 billion, commerce department data showed, bringing it close to levels seen in June and August last year.
This came as US imports increased by 5% to US$348.9 billion, while exports slipped 3.6% to US$292.1 billion.
Analysts generally expected the deficit to grow, but Thursday’s expansion was more than the level projected by surveys of economists conducted by Dow Jones Newswires and The Wall Street Journal.
Earlier this month, Trump was quick to tout a previous drop in the US trade deficit to its lowest level since 2009, attributing it – and the country’s strong economic growth – to the success of his economic policies, including tariffs.
But economists have noted that the export rise seen in October’s figures was significantly influenced by trade in gold.
US trade figures have been heavily swayed by Trump’s waves of tariffs over the past year, as companies rushed to stock up on inventory ahead of planned hikes in levies.
In November, the dip in exports came as exports of goods dropped US$11.1 billion.
Among categories, industrial supplies and materials dropped – including nonmonetary gold – the report said.
Goods imports picked up by US$16.8 billion, with increases seen in consumer products and capital goods such as computers and semiconductors, the commerce department said.
