The Department of Commerce on Thursday released its latest monthly trade report, showing that the U.S. trade deficit narrowed sharply in October as exports rose and imports declined. 

The deficit fell to $29.4 billion, the lowest level since mid-2009, following the Trump administration’s implementation of a sweeping tariff regime in early April 2025. The October narrowing was also influenced by the large movement of gold, which economists said is unlikely to be sustained. Pharmaceuticals were another factor, with October witnessing a $14.3 billion drop in imported medications.

On a year-to-date basis, however, the trade deficit remains 7.7 percent higher than in the same period in 2024 because imports surged early in the year, as U.S. companies and consumers stockpiled goods ahead of anticipated tariff increases. 

Rising costs have become a growing political pressure point for the administration, prompting recent moves to ease tariffs across several sectors, including exemptions for agricultural products.