US trade deficit widens by the most in nearly 34 years in November

The U.S. trade deficit widened by the most in nearly 34 years in November amid a surge in capital goods imports, likely driven by an artificial intelligence investment boom, which could prompt economists to trim their economic growth estimates for the fourth quarter.

The trade gap increased 94.6% to $56.8 billion, the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Thursday. The percentage change was the largest since March 1992. Economists polled by Reuters had forecast the trade deficit would rise to $40.5 billion.

The report was delayed because of the 43-day U.S. government shutdown. Imports jumped 5.0% to $348.9 billion. Goods imports advanced 6.6% to $272.5 billion, with capital goods soaring $7.4 billion to a record high. They were boosted by strong gains in imports of computers and semiconductors. But imports of computer accessories decreased by $3.0 billion.

Imports of other goods were also the highest on record. Consumer goods imports increased by $9.2 billion, lifted by pharmaceutical preparations. There have been large swings in imports of pharmaceutical preparations, likely related to U.S. tariffs. Imports of industrial supplies fell by $2.4 billion.

Exports tumbled 3.6% to $292.1 billion in November. Goods exports plunged 5.6% to $185.6 billion. They were pulled down by a decline of $6.1 billion in exports of industrial supplies and materials, reflecting decreases in non-monetary gold, other precious metals as well as crude oil, which dropped by $1.4 billion.

Consumer goods exports decreased $3.1 billion amid a decline in pharmaceutical preparations shipments.

The goods trade deficit widened 47.3% to $86.9 billion. Imports of services fell, while exports in that category were the highest on record. The deterioration in the trade deficit in November could temper economists' expectations that trade will deliver another large boost to gross domestic product in the fourth quarter.

Trade contributed to GDP growth in the second and third quarters of 2025.

The Atlanta Federal Reserve is forecasting that GDP increased at a 5.4% annualized rate in the fourth quarter, though estimates from big Wall Street banks, including Goldman Sachs, are running well below a 3.0% pace.