The US trade deficit narrowed sharply to $29.4 billion in October 2025, the smallest gap since June 2009, down from a revised $48.1 billion in September and well below forecasts of a $58.1 billion shortfall. The implementation of tariffs led to significant swings in trade flows, particularly in non-monetary gold and pharmaceutical products. Imports declined 3.2% to a 21-month low of $331.4 billion, led by a big fall in pharmaceutical preparations and to a smaller extent nonmonetary gold and transport. On the other hand, purchases went up for computer accessories, telecommunications equipment, and computers. Exports rose 2.6% to a record $302 billion, led by a surge in nonmonetary gold and other precious metals while a fall was seen in pharmaceuticals and government goods and services. The largest gaps were recorded with Mexico ($-17.9 billion), Taiwan ($-15.7 billion), Vietnam ($-15 billion) and China ($-13.7 billion). The trade gap with the EU narrowed sharply to $6.3 billion.