U.S. Trade Deficit Narrows to $105 Billion in September as Exports Rise

The U.S. trade deficit narrowed to $105.0 billion in September as exports rose faster than imports, according to data released Wednesday by the Bureau of Economic Analysis and the Census Bureau. The combined goods and services gap was down from a revised $105.7 billion in August, while exports climbed $5.8 billion to $321.5 billion and imports increased $5.2 billion to $426.6 billion.

The move was modest in headline terms, but the underlying details were stronger than a simple one-month dip in the deficit might suggest. Exports advanced across both goods and services, with capital goods, farm shipments and some service categories adding to the gain. Imports also rose, which points to continued domestic demand, but they did not rise quite as quickly. Through the first nine months of 2026, that pattern has left the overall trade deficit well below the same period a year earlier.

Exports rose faster than imports in September

In its September international trade release, BEA said the goods and services deficit fell by $0.7 billion, or 0.7%, from the previous month. The goods deficit decreased $0.7 billion to $135.9 billion, while the services surplus edged down by less than $0.1 billion to $30.9 billion. That means the overall narrowing came from the goods side rather than from a stronger services surplus.

Exports of goods increased $5.1 billion to $211.0 billion in September, and exports of services rose $0.7 billion to $110.5 billion. Imports of goods increased $4.4 billion to $346.9 billion, while imports of services rose $0.8 billion to $79.7 billion. The report therefore showed a continued expansion in cross-border trade on both sides of the ledger, with the export increase simply outpacing the increase in imports.

That distinction matters because a narrower deficit can arise for very different reasons. At times it reflects falling imports tied to weaker U.S. demand. That was not the picture in September. Instead, the month showed both stronger outbound shipments and somewhat higher inbound purchases. For policymakers and investors, that is a more constructive mix because it suggests foreign demand for U.S. products improved without pointing to an abrupt retrenchment in domestic spending or business investment.

The year-to-date figures told a similar story. BEA said the goods and services deficit was down $92.4 billion, or 12.2%, from the same period in 2025. Exports for the first nine months of the year increased $297.3 billion, or 11.6%, while imports rose $204.9 billion, or 6.2%. In other words, trade flows remained large and active, but export growth has been running ahead of import growth on a cumulative basis in 2026.

Capital goods, soybeans and travel lifted exports

The details of the September report showed that goods exports were led by categories tied to business equipment and agriculture. Capital goods exports rose $3.8 billion. Within that category, computer exports increased $1.3 billion, computer accessories rose $0.8 billion, and civilian aircraft exports climbed $0.7 billion. Foods, feeds and beverages increased $1.9 billion, helped by a $1.3 billion rise in soybean exports. Consumer goods exports rose $0.8 billion, including a $0.7 billion increase in pharmaceutical preparations.

Not every category moved higher. Industrial supplies and materials exports fell $1.0 billion, with nonmonetary gold down $3.4 billion, partly offset by a $1.2 billion increase in crude oil exports. Even so, the broader mix suggested that September’s export gain was not dependent on a single volatile category. Manufacturing-related shipments, agricultural products and selected consumer-oriented goods all contributed.

Services exports also improved. Travel exports increased $0.3 billion, and charges for the use of intellectual property increased $0.1 billion. Those categories are smaller in dollar terms than many large goods flows, but they matter because services remain one of the areas where the United States consistently runs a surplus. A steadier services performance can cushion swings in the goods balance, even when it does not dominate the monthly change.

On the import side, capital goods again stood out. Imports of capital goods increased $11.6 billion, with computer imports up $7.6 billion and computer accessories up $5.7 billion. Consumer goods imports increased $2.4 billion, including a $2.9 billion rise in pharmaceutical preparations. Offsetting those gains, industrial supplies and materials imports fell $3.7 billion, including a $2.7 billion drop in nonmonetary gold and a $1.3 billion decrease in crude oil. Services imports rose on higher travel and transport payments.

The release also contained an important measurement wrinkle. BEA noted that, when the agency incorporates these trade figures into the national accounts, exports and imports of nonmonetary gold are replaced with a separate adjustment tied to domestic production and industrial use. That helps explain why the nominal goods deficit on a balance-of-payments basis narrowed in September, while the real goods deficit on a Census basis increased $3.5 billion, or 3.0%, to $119.5 billion. Real exports of goods rose only 0.1%, while real imports increased 1.4%.

Country balances and real-goods data show a more mixed picture

Country data showed that the United States still ran sizeable goods deficits with many major trading partners in September, even as the overall goods and services gap narrowed. On a Census basis, the largest reported goods deficits were with Mexico at $28.7 billion, Vietnam at $25.3 billion, Taiwan at $21.9 billion, China at $17.9 billion and the European Union at $14.2 billion. Surpluses were recorded with the Netherlands, South and Central America, the United Kingdom, Hong Kong and Australia, among others.

Several bilateral moves were notable. The goods deficit with Taiwan increased $3.6 billion to $21.9 billion in September as exports to Taiwan increased $0.6 billion but imports from Taiwan jumped $4.2 billion. The deficit with the European Union widened $3.2 billion to $14.2 billion as exports to the bloc slipped and imports increased. By contrast, the deficit with Canada narrowed $2.7 billion to $4.4 billion because imports from Canada fell $3.0 billion.

Those country figures are useful context because they show that the narrower overall trade gap did not reflect a broad-based improvement against all major partners. Instead, the September result was shaped by the total balance across goods and services, category-specific moves inside exports and imports, and accounting adjustments that affect how the monthly data are presented. A better headline number therefore coexisted with wider deficits in some bilateral relationships and a larger inflation-adjusted goods shortfall.

For economists watching growth, the September report does not point in only one direction. The smaller headline deficit is a positive development on its face, and the year-to-date improvement from 2025 is substantial. At the same time, the real goods figures were softer, and monthly trade data can swing meaningfully from one report to the next because of aircraft deliveries, agricultural shipments, pharmaceuticals, gold and other lumpy categories. The September report is best read as evidence that export momentum improved enough to trim the overall imbalance, not as proof that trade pressures have disappeared.

The next official update on U.S. international trade, covering October, is scheduled for Dec. 8. That release will show whether September’s export-led narrowing in the deficit was the start of a broader late-year trend or another monthly move inside what remains a large U.S. trade gap.