The US trade deficit narrowed sharply to $54.5 billion in January 2026, the lowest since October, following a revised $72.9 billion in December and compared to forecasts of a $66.6 billion gap. Exports jumped 5.5% to a record high of $302.1 billion led by sales of nonmonetary gold, other precious metals, computers, civilian aircraft and computer accessories while sales were down for pharmaceutical preparations. In contrast, imports declined 0.7% to $356.6 billion led by pharmaceutical preparations, trucks, buses, and special purpose vehicles, passenger cars and nonmonetary gold. On the other hand, imports rose for computers and telecommunications equipment. The largest trade gaps were recorded with Vietnam ($-19 billion vs $-17.6 billion in December), Taiwan ($-17.3 billion vs $-19.8 billion), Mexico ($-12.8 billion vs $-14.5 billion), and China ($-12.5 billion vs $-12.4 billion). The deficit with the EU narrowed sharply to $6.1 billion from $11.1 billion.