US trade deficit narrows in January as exports jump to record high

WASHINGTON, March 12 (Reuters) - The U.S. trade deficit narrowed sharply in January as exports surged to a record high and imports fell, a trend that if sustained, could see trade contributing to economic growth ‌in the first quarter.

The trade gap contracted 25.3% to $54.5 billion, the Commerce Department's Bureau of Economic Analysis and ‌Census Bureau said on Thursday. Data for December was revised to show the deficit widening to $72.9 billion instead of $70.3 billion as previously estimated. Economists polled ​by Reuters forecast the trade deficit shrinking to $66.6 billion in January.

The report was delayed because of last year's government shutdown. Trade data have been volatile amid President Donald Trump's sweeping tariffs. The import duties, which Trump pursued under a law meant for use in national emergencies, were struck down by the U.S. Supreme Court.

But Trump responded to the ruling by imposing a 10% global ‌tariff, which he said would rise to ⁠15%. The Trump administration said on Wednesday it was launching two trade investigations into excess industrial capacity in 16 major trading partners and into forced labor.

Trump has defended the tariffs as ⁠necessary to address trade imbalances and protect U.S. industries. So far, the manufacturing rebirth has not materialized and 100,000 factory jobs have been lost since January 2025.

Exports jumped 5.5% to an all-time high of $302.1 billion in January. The increase was the largest since October ​2021. Goods ​exports soared 8.1% to $195.5 billion. They were boosted by a $9.4 billion ​increase in exports of industrial supplies and materials, ‌mostly nonmonetary gold and other precious metals.

Capital goods exports increased $5.4 billion to a record high, boosted by computers, civilian aircraft as well as computer accessories. Exports of other goods rose $2.9 billion, also to an all-time high. But consumer goods exports decreased $2.8 billion to the lowest level since October 2022, pulled down by a $2.1 billion decline in pharmaceutical preparations.

Imports fell 0.7% to $356.6 billion in January. Goods imports slipped 1.0% to $277.3 billion. They were dragged down by a $3.3 billion decrease in consumer goods, mostly ‌pharmaceutical preparations. Imports of automotive vehicles, parts and engines fell $2.8 billion ​amid decreases in trucks, buses and special-purpose vehicles, as well as passenger ​cars.

Imports of industrial supplies and materials dropped $1.4 billion, with ​nonmonetary gold falling $1.1 billion.

But imports of capital goods increased $3.4 billion to a record high, driven by ‌computers and telecommunications equipment, likely linked to artificial intelligence ​and the construction of data centers.