The US trade deficit narrowed sharply to $54.5 billion in January 2026, the smallest gap since October, from a revised $72.9 billion in December and well below market expectations of $66.6 billion.
Exports rose 5.5% to a record $302.1 billion, driven by higher sales of nonmonetary gold, other precious metals, computers, civilian aircraft, and computer accessories. These gains more than offset weaker exports of pharmaceutical preparations.
Imports declined 0.7% to $356.6 billion, led by lower purchases of pharmaceutical preparations; trucks, buses, and special purpose vehicles; passenger cars; and nonmonetary gold. By contrast, imports of computers and telecommunications equipment increased.
The largest bilateral trade deficits were recorded with Vietnam ($19.0 billion vs. $17.6 billion in December), Taiwan ($17.3 billion vs. $19.8 billion), Mexico ($12.8 billion vs. $14.5 billion), and China ($12.5 billion vs. $12.4 billion). The deficit with the European Union narrowed markedly, falling to $6.1 billion from $11.1 billion.
