US Trade Deficit Falls to $105 Billion in September 2026

The US trade deficit contracted slightly in September 2026, offering some relief after a sharp increase in the previous month. Higher exports of capital goods, food and other products helped narrow the gap between the value of goods and services sold abroad and those purchased from overseas.

According to data released by the US Bureau of Economic Analysis (BEA) and the US Census Bureau on November 4, the country’s goods and services trade deficit fell to $105 billion in September, down from a revised $105.7 billion in August. The decrease amounted to approximately 0.7%.

Exports increased by 1.9% during the month to reach $321.5 billion, while imports rose by 1.2% to $426.6 billion. Although the United States continued to import considerably more than it exported, the faster growth in exports helped reduce the overall trade gap.

The September figures also showed that imports of computers and computer accessories increased substantially, reflecting continued demand for capital goods. At the same time, crude oil imports declined by $1.3 billion, while exports of several product categories recorded gains.

The latest figures provide an updated picture of US International Trade amid changing global demand, investment in technology infrastructure and the continuing impact of trade policy decisions.

US Trade Deficit Falls to $105 Billion

The overall US goods and services trade deficit declined by $700 million in September compared with August. The previous month’s deficit was revised to $105.7 billion, meaning the latest reduction was relatively modest but reversed part of the pressure created by rising imports.

The trade deficit measures the difference between the value of goods and services a country imports and the value it exports. When imports exceed exports, the country records a trade deficit. When exports exceed imports, it records a trade surplus.

For the United States, imports remained significantly higher than exports in September. The country purchased $426.6 billion worth of goods and services from overseas markets while exporting $321.5 billion. The resulting gap was approximately $105 billion.

The improvement occurred because exports increased by $5.8 billion compared with August, while imports rose by $5.2 billion. The stronger increase in exports helped offset the additional spending on imported products.

However, the monthly movement does not necessarily indicate a sustained reduction in the trade deficit. International trade figures can fluctuate because of changes in business investment, consumer demand, energy prices, commodity shipments and the timing of imports and exports.

Imports Increase as Demand for Computers and Capital Goods Strengthens

US imports increased 1.2% in September to $426.6 billion. The rise reflected higher purchases of goods and services, with capital goods accounting for a substantial portion of the increase in merchandise imports.

Imports of goods increased by $4.4 billion to $346.9 billion. On a Census basis, goods imports rose by $8 billion, with capital goods making the largest contribution.

Within the capital goods category, imports of computers increased by $7.6 billion, while computer accessories rose by $5.7 billion. These increases were partly offset by a $1.2 billion decline in semiconductor imports.

The figures highlight the continued importance of technology-related products in US international trade. Computers and related equipment are used across businesses, manufacturing operations, data infrastructure and other economic activities. Higher imports in these categories can reflect demand for equipment and investment-related products, although the monthly figures alone do not establish the precise reasons behind the increase.

Consumer goods imports also moved higher, increasing by $2.4 billion. Pharmaceutical preparations accounted for a significant part of that movement, with imports in the category rising by $2.9 billion.

In contrast, imports of industrial supplies and materials decreased by $3.7 billion. Nonmonetary gold imports fell by $2.7 billion, while crude oil imports declined by $1.3 billion.

The reduction in crude oil imports was an important development in the September trade figures. It helped offset some of the increase in other imported goods, particularly computers and capital equipment.

Imports of services increased by $800 million to $79.7 billion. Higher spending on travel and transport services contributed to the increase, with travel imports rising by $500 million and transport imports increasing by $200 million.

Exports Rise to $321.5 Billion on Capital Goods and Food Shipments

US exports increased by 1.9% in September, reaching $321.5 billion. The $5.8 billion monthly increase was supported by stronger shipments of goods, particularly capital goods and food products.

Exports of goods rose by $5.1 billion to $211 billion. Capital goods accounted for much of the increase, with exports in the category rising by $3.8 billion.

Computer exports increased by $1.3 billion, while computer accessories rose by $800 million. Civilian aircraft exports also recorded an increase of $700 million.

The growth in capital goods exports suggests that US suppliers recorded stronger international shipments of several higher-value products during the month. Such products are important components of global industrial and business investment, making their trade performance relevant to the wider manufacturing and technology sectors.

Exports of foods, feeds and beverages increased by $1.9 billion. Soybean shipments contributed significantly, rising by $1.3 billion during September.

Consumer goods exports also increased by $800 million, supported partly by a $700 million rise in pharmaceutical preparations.

Not all export categories recorded growth. Industrial supplies and materials exports declined by $1 billion. Nonmonetary gold exports fell by $3.4 billion, although crude oil exports increased by $1.2 billion.

The increase in crude oil exports is particularly relevant when considered alongside the decline in crude oil imports. The two movements contributed in opposite directions to the US energy trade position during September.

Exports of services increased by $700 million to $110.5 billion. Higher travel exports, which rose by $300 million, and increased charges for the use of intellectual property contributed to the improvement.

Goods Trade Deficit Narrows While Services Surplus Edges Lower

The September report showed that the goods and services components of US trade moved in different directions. The goods deficit decreased by $700 million to $135.9 billion, while the services surplus declined by less than $100 million to $30.9 billion.

The goods deficit represents the difference between the value of merchandise imported and exported by the United States. It remained the larger component of the overall trade imbalance, reflecting the substantial volume of goods purchased from overseas suppliers.

The services sector, by contrast, continued to record a surplus. US exports of services exceeded imports, helping offset part of the deficit generated by merchandise trade.

Services trade includes activities such as travel, transport, financial services, intellectual property charges and other business services. These transactions form an important part of the country’s international economic relationships.

The services surplus declined slightly in September, meaning it provided marginally less support in offsetting the goods deficit than in the previous month. Nevertheless, the overall trade deficit still narrowed because the goods deficit decreased.

The difference between goods and services is important when assessing the broader trade position. A country can record a large merchandise deficit while maintaining a surplus in services, and movements in either component can influence the overall result.

US Trade Deficit Remains Lower on a Year-to-Date Basis

Despite the monthly fluctuations, the cumulative US goods and services trade deficit remained lower during the first nine months of 2026 than in the corresponding period of 2025.

The BEA reported that the year-to-date trade deficit decreased by $92.4 billion, or 12.2%, compared with the same period a year earlier.

Exports increased by $297.3 billion, representing growth of 11.6%. Imports also increased, but at a slower rate, rising by $204.9 billion, or 6.2%.

The difference between the growth rates of exports and imports helped explain the reduction in the cumulative deficit. The United States sold more goods and services abroad compared with the previous year, while the increase in purchases from overseas was less pronounced.

However, the year-to-date improvement does not mean that the trade deficit declined in every month. The August figures, for example, showed a substantial increase in the monthly deficit as imports rose more quickly than exports.

The September decline therefore represents one part of a changing monthly pattern. The broader year-to-date figures provide a longer-term perspective and indicate that the overall trade gap remained below its level for the equivalent period in 2025.

Three-Month Average Shows Continued Pressure on Trade Balance

While the September monthly deficit narrowed, the three-month moving average presented a less positive picture. The average goods and services deficit increased by $11.3 billion to $101.2 billion for the three months ending in September.

During the same period, average exports increased by $1.4 billion to $316 billion, while average imports rose by $12.7 billion to $417.2 billion.

The difference between the monthly result and the three-month average illustrates why a single month’s trade figures should not be treated as a complete indication of the direction of international trade.

The three-month comparison showed that imports had been increasing more rapidly than exports over the period, putting pressure on the trade balance even as September itself recorded a smaller deficit.

The year-over-year comparison for the three months ending in September also showed a wider average deficit. It increased by $36.5 billion compared with the corresponding three-month period in 2025.

Average exports were $28.9 billion higher than a year earlier, but average imports had increased by $65.4 billion. The larger increase in imports contributed to the deterioration in the three-month average.

These figures suggest that the September improvement should be considered alongside the broader import and export trend rather than viewed in isolation.

Trade Balances With Major Partners Show Mixed Results

The September trade report also highlighted differences in the US trade relationship with individual countries and regions. The United States recorded merchandise trade surpluses with several partners while maintaining deficits with a larger group of major trading economies.

Among the largest reported goods deficits were those with Mexico, Vietnam, Taiwan, China and the European Union. The deficit with Mexico stood at $28.7 billion, followed by Vietnam at $25.3 billion and Taiwan at $21.9 billion.

The United States also recorded a $17.9 billion goods deficit with China and a $14.2 billion deficit with the European Union.

Other reported deficits included $12.2 billion with South Korea, $7.9 billion with Germany, $6.3 billion with Italy, $5.3 billion with Malaysia and $4.8 billion with Japan.

The deficit with India stood at $4.5 billion, while the United States recorded a $4.4 billion deficit with Canada.

Some trade relationships moved in different directions during the month. The deficit with Taiwan increased by $3.6 billion to $21.9 billion. Exports to Taiwan rose by $600 million to $5.3 billion, but imports increased by $4.2 billion to $27.3 billion.

The deficit with the European Union also widened, increasing by $3.2 billion to $14.2 billion. US exports to the bloc decreased by $600 million to $39 billion, while imports increased by $2.6 billion to $53.2 billion.

By contrast, the US goods deficit with Canada narrowed by $2.7 billion to $4.4 billion. Exports to Canada decreased by $300 million to $29.7 billion, but imports fell by a larger $3 billion to $34.1 billion.

The United States recorded goods trade surpluses with the Netherlands, South and Central America, the United Kingdom, Hong Kong, Australia, Brazil, Singapore, Saudi Arabia and Belgium.

These country-level figures demonstrate that the overall US trade balance is influenced by a wide range of trading relationships. Changes in imports and exports with individual partners can move in different directions even when the national trade deficit narrows.

What the September Trade Figures Mean for the US Economy

The September trade report provides a mixed picture of the US Economy. The narrower monthly deficit is a positive development in the sense that exports increased more quickly than imports. However, the continued rise in imports and the increase in the three-month average deficit show that pressure on the trade balance has not disappeared.

Stronger exports of capital goods, food products and pharmaceuticals indicate that several US industries recorded improved overseas shipments. The increase in computer and aircraft exports also highlights the contribution of higher-value manufactured products to international trade.

At the same time, the substantial increase in computer and computer accessory imports points to strong demand for technology-related equipment. Imports can support domestic businesses by providing access to products, components and machinery that are used in production and investment.

A trade deficit is not, by itself, proof that an economy is performing poorly. It can reflect strong domestic demand, business investment and consumer purchases of foreign products. The economic implications depend on the composition of trade, the broader financial position and how imports and exports develop over time.

The September figures also cannot establish whether changes in trade flows were directly caused by tariffs, energy prices or investment in artificial intelligence infrastructure. Such factors may influence international commerce, but the monthly trade report records the value of transactions rather than identifying a single cause for each movement.

For policymakers and businesses, the distinction between monthly and longer-term trends will remain important. The latest figures show a modest improvement in September, but the three-month average indicates that imports continued to grow faster than exports over the broader period.

What to Watch in the Next US Trade Report

The next update will help determine whether the September improvement marks the beginning of a more sustained narrowing in the US trade deficit or represents a temporary monthly movement.

Changes in capital goods imports will be particularly important to monitor after the substantial increase in computers and computer accessories recorded in September. Further movements in energy imports and exports could also influence the goods balance.

Developments in services trade will provide another important indicator. The United States continued to record a services surplus in September, but that surplus edged lower. Future changes in travel, transport and other services transactions could affect the extent to which the sector offsets the merchandise deficit.

The BEA and the US Census Bureau scheduled the release of October 2026 international trade figures for December 8, 2026. That report will provide a further assessment of US exports, imports and the overall trade balance.

For now, the September data show that the US trade deficit narrowed slightly as exports outpaced imports. However, the larger three-month average deficit and continued growth in technology-related imports suggest that the country’s trade position remains subject to significant changes.

Data Notes

The September 2026 international trade figures were released by the US Bureau of Economic Analysis and the US Census Bureau on November 4, 2026. The headline figures are seasonally adjusted and presented on a balance-of-payments basis unless otherwise specified.

The overall goods and services trade deficit measures the difference between US exports and imports of both merchandise and services. The goods deficit and services surplus are separate components of this overall balance.

Monthly trade statistics can be revised as additional information becomes available. The August 2026 figures used in the September comparison were revised, and subsequent releases may update previously reported values.

The report also provides figures on a Census basis for selected goods categories and trading partners. These figures may differ from balance-of-payments measures because of adjustments made to align the statistics with international economic accounting standards.

The BEA and Census Bureau publish additional information on trade by product category, country and service type. The figures should be interpreted with these measurement differences and revision procedures in mind.