The US international trade deficit narrowed to its lowest level in five months as trade with China shrank in September, reflecting Washington’s imposition of higher tariffs on goods from the world’s second-largest economy.
The trade deficit in goods and services shrank to $52.5bn last month from $55bn in August, in line with economists expectations, according to a Reuters survey. That was the slimmest deficit since April, according to a report from the Commerce Department.
The report also showed the goods deficits with China fell by $900m to $28bn. While exports to China fell by $1bn to $9bn, imports from the world’s second-largest economy decreased by $1.9bn to $37bn. The US slapped 15 per cent of tariffs on about $110bn of Chinese goods at the start of September.