WASHINGTON (Reuters) – The U.S. trade deficit widened in November, likely as businesses worried about President-elect Donald Trump’s threats to raise tariffs on foreign goods front-loaded imports, more than offseting a surge in exports to a record high.
The trade gap increased 6.2% to $78.2 billion from a revised $73.6 billion in October, the Commerce Department’s Bureau of Economic Analysis said on Tuesday. Economists polled by Reuters had forecast the trade deficit widening to $78.0 billion from the previously reported $73.8 billion in October.
Imports rose 3.4% to $351.6 billion. Goods imports surged 4.3% to $280.9 billion. Trump has said he would impose a 25% tariff on all products from Mexico and Canada and an additional 10% tariff on goods from China. Trump on Monday denied a newspaper report that said his aides were exploring tariff plans that would only cover critical imports.
Exports advanced 2.7% to $273.4 billion, an all-time high. Goods exports increased 3.6% to $177.6 billion.
Trade has subtracted from GDP for three straight quarters. The Atlanta Federal Reserve is currently forecasting gross domestic product rising at a 2.4% annualized rate in the fourth quarter. The economy grew at a 3.1% pace in the July-September quarter.
(Reporting By Lucia Mutikani; Editing by Chizu Nomiyama)
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