The US trade deficit recorded its sharpest monthly increase in nearly 34 years in November, jumping 94.6% to $56.8 billion, according to data released Thursday by the Commerce Department. The surge was largely tied to a spike in capital goods imports, reflecting strong demand driven by investments in artificial intelligence.
This marked the steepest percentage rise in the trade gap since March 1992. The increase far exceeded economists’ expectations. A Reuters poll had projected the deficit would reach $40.5 billion. Analysts say the unexpected widening could weigh on estimates for fourth-quarter economic growth.
Imports climb sharply, led by capital goods and pharmaceuticals
The report, delayed due to the 43-day government shutdown, showed total imports climbed 5% to $348.9 billion. Goods imports rose 6.6% to $272.5 billion. Capital goods led the increase, with a $7.4 billion rise that pushed the category to a record high.
Computers and semiconductors were the main contributors, although imports of computer accessories declined by $3 billion.
📈 The US trade deficit surged 94.6% in November — the biggest jump since 1992 — driven by record-high imports of capital goods tied to AI investments, while exports tumbled.#USTradeDeficit #EconNews #Imports #Exports #AI #GDP #TradeGap #WallStreet #Economy #Finance pic.twitter.com/EHzUpf3fg9
— Tom Marvolo Riddle (@tom_riddle2025) January 29, 2026
Consumer goods imports also hit record levels, increasing by $9.2 billion, largely due to a rise in pharmaceutical products. The data showed notable volatility in pharmaceutical imports, which officials suggest may be linked to tariff-related changes. Imports of industrial supplies declined by $2.4 billion.
Exports decline; goods trade gap widens further
Exports fell 3.6% in the same month to $292.1 billion. Goods exports dropped 5.6% to $185.6 billion. A $6.1 billion fall in shipments of industrial supplies and materials, including crude oil, non-monetary gold and other precious metals, contributed to the decline.
Crude oil alone dropped by $1.4 billion. Consumer goods exports decreased by $3.1 billion, weighed down by lower pharmaceutical shipments.
The goods trade gap widened to $86.9 billion, a 47.3% increase. While imports of services declined, exports in that category reached a record high.
Broader impact of the US trade deficit on GDP outlook
Economists say the widening trade shortfall could limit trade’s contribution to gross domestic product in the final quarter of the year. Trade had supported GDP growth in the second and third quarters of 2025.
The Federal Reserve Bank of Atlanta currently estimates fourth-quarter GDP growth at an annualized rate of 5.4%. In contrast, Goldman Sachs and other major Wall Street banks expect growth to remain under 3%.
