As per the report, the US trade deficit six months into President Donald Trump's tariffs tumbled to its lowest level since mid-2009. While the American exports rose significantly, imports fell, which Trump is now crediting to the tariffs he imposed last year. The trade shortfall was just $29.4 billion for October, down 39 per cent from the prior month. Exports increased 2.6 per cent while imports slipped 3.2 per cent.
"BREAKING NEWS: Numbers released today show that the United States of America has the lowest Trade Deficit since 2009, and going even lower... These incredible numbers, and the unprecedented SUCCESS of our Country, are a direct result of TARIFFS" - President Donald J. Trump 🇺🇸 pic.twitter.com/k3e0FbKfLC
— The White House (@WhiteHouse) January 9, 2026
What makes the figures significant is the fact that the total was the lowest since the second quarter of 2009, as the US was just coming out of the financial crisis and the Great Recession. "Numbers released today show that the United States of America has the lowest Trade Deficit since 2009, and going even lower... These incredible numbers, and the unprecedented SUCCESS of our Country, are a direct result of TARIFFS," Trump said in a statement after the release of the report.
Trump's tariff gamble worked for him
It is pertinent to note that the numbers reflected the trade activity since Trump levied his
However, Trump managed to back off on many of the most severe tariff threats he made, and the data shows a strong market for US products. It becomes noteworthy to point out that the year-to-date deficit was still 7.7 per cent higher than the same period in 2024. "Still, the decelerating imbalance will provide a much-needed boost for fourth quarter economic growth that has been hit hard by the Federal government shutdown," wrote Chris Rupkey, chief economist at FWDBonds.
"The U.S. appears to be winning the trade war with tariffs curbing the imports of foreign goods, but America's trading partners are not holding any grudge as they continue to buy more American goods and services," he added. "So far, the forecasts for a US recession are coming up dry as productivity continues to backstop growth."
While the US trade figures came as good news for the Trump administration, hiring in the country has been weak, according to the Labour Department report released on Thursday, which also noted that layoffs are holding low. Initial unemployment claims for the week ended January 3 totalled 208,000, pushing the four-week moving average to its lowest since April 27, 2024.
