US Trade Deficit Narrows to $105bn in September as Exports Rise

November 5, 2026 | By Semahegn Nigatu

The US trade deficit narrowed slightly in September 2026 as exports increased more than imports, although the three-month average deficit widened amid stronger import growth, according to data released by the US Census Bureau and the Bureau of Economic Analysis.

The deficit in goods and services fell by 700 million US dollars to 105 billion US dollars from a revised 105.7 billion US dollars in August. Exports rose by 5.8 billion US dollars to 321.5 billion US dollars, while imports increased by 5.2 billion US dollars to 426.6 billion US dollars.

The monthly improvement was driven by a 700 million US dollar reduction in the goods trade deficit, which stood at 135.9 billion US dollars. The surplus in services narrowed by less than 100 million US dollars to 30.9 billion US dollars.

Despite the monthly decline, the three-month average trade deficit increased by 11.3 billion US dollars to 101.2 billion US dollars for the period ending in September. Average imports rose by 12.7 billion US dollars to 417.2 billion US dollars, outpacing the 1.4 billion US dollar increase in average exports to 316 billion US dollars.

The annual comparison showed a stronger improvement. The cumulative goods and services deficit for the first nine months of 2026 fell by 92.4 billion US dollars, or 12.2 percent, compared with the same period in 2025. Exports increased by 297.3 billion US dollars, or 11.6 percent, while imports rose by 204.9 billion US dollars, or 6.2 percent.

Goods exports increased by 5.1 billion US dollars to 211 billion US dollars in September, led by a 3.8 billion US dollar rise in capital goods. Computer exports increased by 1.3 billion US dollars, while civilian aircraft exports rose by 700 million US dollars. Exports of food, feeds and beverages increased by 1.9 billion US dollars, including a 1.3 billion US dollar rise in soybeans.

Services exports rose by 700 million US dollars to 110.5 billion US dollars, supported by increases in travel and charges for the use of intellectual property.

On the import side, goods purchases increased by 4.4 billion US dollars to 346.9 billion US dollars. Capital goods accounted for much of the movement, with imports in that category rising by 11.6 billion US dollars on a Census basis. Computer imports increased by 7.6 billion US dollars, while pharmaceutical preparations rose by 2.9 billion US dollars.

Services imports increased by 800 million US dollars to 79.7 billion US dollars, with higher spending on travel and transport.

The country-level figures showed that the United States recorded its largest September goods deficit with Mexico, at 28.7 billion US dollars, followed by Vietnam at 25.3 billion US dollars and Taiwan at 21.9 billion US dollars. The deficit with China stood at 17.9 billion US dollars, while the shortfall with the European Union reached 14.2 billion US dollars.

The deficit with Taiwan widened by 3.6 billion US dollars during the month as imports increased by 4.2 billion US dollars to 27.3 billion US dollars. The shortfall with the European Union expanded by 3.2 billion US dollars to 14.2 billion US dollars, while the deficit with Canada narrowed by 2.7 billion US dollars to 4.4 billion US dollars.

The figures also showed that the real goods trade deficit, measured in 2017 dollars, widened by 3.5 billion US dollars, or 3 percent, to 119.5 billion US dollars in September.

Source: FSX Business News