The United States’ trade deficit surged in November, reaching US$56.8 billion, nearly double the US$29.2 billion recorded in October, government data showed Thursday. The sharp rise came despite President Donald Trump’s tariff policies aimed at reducing global trade imbalances.
According to the U.S. Census Bureau, the November shortfall represented a 94.6 percent increase month-on-month. About one-third of the increase stemmed from growing deficits with the European Union, where U.S. goods imports outpaced exports by US$8.2 billion. Meanwhile, the goods deficit with China decreased slightly, falling by roughly US$1 billion to US$13.9 billion.
On a year-to-date basis through November, the cumulative U.S. trade deficit reached US$839.5 billion, about 4 percent higher than the same period in 2024. The figures underscore the persistent challenges facing U.S. trade policy as tariffs fail to fully curb the widening gap between imports and exports.
The spike comes after a temporary period of improvement. In October, the deficit fell to its lowest monthly level since early 2009, offering a brief reprieve before November’s sharp jump. Analysts noted that seasonal factors, supply chain adjustments, and strong consumer demand for imports contributed to the rebound.
Trump has repeatedly linked trade imbalances to tariffs, imposing duties on a wide range of foreign goods in an effort to incentivize domestic production and reduce deficits. In April 2025, the White House announced a set of reciprocal tariffs, using deficit levels with individual countries as a benchmark for duty rates. However, as the year progressed, the administration softened its approach, particularly toward the EU.
A framework agreement signed with the EU in August 2025 capped tariffs at 15 percent on most European goods, signaling an attempt to stabilize transatlantic trade relations while maintaining pressure on other partners. Despite this, the U.S.-EU trade gap expanded significantly in November, highlighting the limits of tariffs in addressing structural trade imbalances.
Economic analysts said the data reflect both strong U.S. consumer demand for foreign goods and ongoing supply chain dynamics rather than a failure of policy alone. “The trade deficit is influenced by complex factors, including domestic consumption patterns, currency fluctuations, and global production cycles,” said Rebecca Lawson, senior economist at the Peterson Institute for International Economics. “Tariffs alone cannot fundamentally reverse the structural imbalance.”
The U.S. goods deficit with the EU has grown in part due to strong imports of machinery, automobiles, and consumer goods, while exports of U.S. products such as aircraft and agricultural commodities have lagged. By contrast, trade with China has slightly improved after months of high tariffs, reflecting adjustments in supply chains and shifting demand patterns.
The November spike also comes as the U.S. economy continues to grapple with the broader effects of tariffs, which include higher costs for consumers and businesses and occasional retaliatory measures from trade partners. Many economists argue that while tariffs may protect certain domestic industries, they can also exacerbate inflation and complicate international relations.
Despite the surge, the Trump administration has touted tariffs as a tool for promoting “fair trade” and protecting American jobs. However, critics contend that the November figures underscore the limitations of unilateral trade measures in a highly integrated global economy.
As the U.S. moves into 2026, trade policymakers face the challenge of balancing domestic economic goals with global competitiveness. The November trade deficit highlights that while tariffs may influence short-term patterns, long-term structural changes such as investment in manufacturing, export promotion, and multilateral trade agreements will likely play a larger role in reducing persistent deficits.
