U.S. Trade Deficit Surges Amid Tariff Concerns

In November, the U.S. trade deficit widened to $78.2 billion as businesses accelerated imports due to potential tariff increases under President-elect Donald Trump. Imports surged 3.4% while exports reached a record high. The trade gap has negatively impacted GDP for three consecutive quarters.

The U.S. trade deficit expanded significantly in November, rising to $78.2 billion as companies expedited imports over fears of impending tariffs from President-elect Donald Trump. This increase in imports overshadowed a historic rise in exports.

November saw imports climb 3.4% to $351.6 billion, with goods imports surging 4.3%. Trump's proposed tariffs include a 25% levy on Mexican and Canadian products and an additional 10% on Chinese goods. Exports, meanwhile, reached an unprecedented level, advancing by 2.7% to $273.4 billion.

The trade deficit has dragged down GDP for three quarters in a row, with the Atlanta Federal Reserve projecting a 2.4% growth rate for the fourth quarter. The economy had previously expanded at a 3.1% rate from July to September.

(With inputs from agencies.)