U.S. Trade Deficit Falls, But Likely to Remain High
October 28, 2020
After hitting a record high the month before, the U.S. trade deficit in goods fell slightly in September. The gap fell to $79.4 billion from $83 billion. Economists had expected a small increase to $83.5.
Exports were up for the month, but still well below pre-pandemic levels. Other nations have been slow to recover, lowering the demand for American-made goods. At the same time, import levels have recovered to their pre-pandemic levels, a good sign that businesses and consumers are more confident in the economy.
The gap is likely to remain high throughout the holiday shopping season, as more Americans are poised to buy foreign goods. It also remains unclear how the surge of coronavirus cases in Europe will impact American exports.