In an unexpected turn of events, the trade deficit in the United States narrowed significantly in September, dropping to its lowest level in over five years. The main reason for this decline was the robust growth in goods exports, which may have helped boost the country’s third-quarter economic growth, according to the latest data released by the government.
On Thursday, December 11th, the U.S. Census Bureau and Bureau of Economic Analysis (BEA) published the “U.S. International Trade in Goods and Services for September 2025” report, which indicated a 10.9% reduction in the international trade deficit in September, decreasing to $52.8 billion. This marked a $6.4 billion decrease from the revised $59.3 billion in August, making it the lowest since June 2020.
This outcome was also far below market expectations, as economists had predicted the September deficit to increase to $63.3 billion. The report was delayed due to a 43-day government shutdown.
Regarding exports, the September export value was $289.3 billion, an increase of $8.4 billion from August, representing a 3.0% growth. Goods exports rose by 4.9% to $187.6 billion, with consumer goods exports hitting a historical high.
As for imports, the September import value stood at $342.1 billion, up by $1.9 billion from August, showing a slight 0.6% increase. Goods imports also grew by 0.6% to $266.6 billion. However, imports of automobiles, parts, and engines dropped to their lowest level since November 2022, indicating a potential adjustment phase in the U.S. automotive supply chain.
The report pointed out that the trade deficit for goods in September decreased by $7.1 billion, narrowing by 8.2% to $79.0 billion, the lowest since September 2020 and comparable to levels seen during the early stages of the pandemic, suggesting a continued stabilization in the structure of U.S. goods trade.
The latest data suggests that U.S. trade momentum is returning to a normal track and is expected to contribute to third-quarter GDP growth. Previously, the Federal Reserve Bank of Atlanta estimated the annualized GDP growth rate for the third quarter to be 3.5%. Following the longest government shutdown in history, the government is set to release the initial estimate of U.S. third-quarter GDP data on December 23rd. In the second quarter of this year, the U.S. economy grew at an annualized rate of 3.8%.
Analysts believe that the strong U.S. export performance is mainly driven by the global manufacturing recovery, the moderate decline in the U.S. dollar in recent months, and the enhanced competitiveness of some U.S. goods.