US trade deficit shrinks to $54.5 billion in January as exports surge

Washington: The US trade deficit shrank more than analysts expected in January on an exports boost, official data showed Thursday.

The trade gap was $54.5 billion for the month, pulling back 25.3 percent from December's level, the Commerce Department said.

Trade flows in the world's biggest economy have been buffeted by President Donald Trump's fast-changing tariffs since he returned to the White House last year, although a huge swath of them were struck down by the Supreme Court last month.


While the data reflects a tariff system that is now outdated, trade uncertainty still clouds the outlook.

Swiftly after the court's ruling, Trump tapped different authorities to impose a new, temporary 10-percent duty on imports.

On Wednesday, his administration announced new probes into dozens of trading partners, with an eye of resurrecting his trade agenda.

For now, with the temporary duties that last 150 days, US consumers still face the highest average effective tariff rate since the 1940s, according to The Budget Lab at Yale University.

The narrower deficit comes as exports jumped 5.5 percent to $302.1 billion, bolstered by industrial supplies and capital goods ranging from computers to civilian aircraft.

But exports of consumer goods like pharmaceuticals pulled back.

Meanwhile, US imports ticked down 0.7 percent to $356.6 billion, with declines seen in consumer goods, automobiles and industrial supplies.