U.S. Trade Deficit Hits 2.5-Year High Amid Import Surge

The U.S. trade deficit soared to its highest level in 2.5 years in September, driven by increased imports following strong domestic demand and anticipated tariff hikes. The deficit rose 19.2% to $84.4 billion, with imports peaking at a record $352.3 billion amid the tight U.S. presidential race.

The United States witnessed its trade deficit surge to its highest in nearly two and a half years in September. The spike was attributed to businesses ramping up imports in response to strong domestic demand and in preparation for potential tariff increases under a prospective Donald Trump administration.

According to the U.S. Commerce Department, the trade gap expanded by 19.2% to reach $84.4 billion, marking the highest since April 2022. Imports soared to a record $352.3 billion, driven by a significant rise in consumer goods, including pharmaceuticals, as well as capital goods like computers and semiconductors.

Exports, on the other hand, fell 1.2% to $267.9 billion, contributing to a growing trade imbalance. The presidential race's outcome could further influence trade dynamics, with businesses potentially accelerating imports to hedge against expected tariff adjustments.

(With inputs from agencies.)