President Donald Trump's tariff strategy led to a major drop in the U.S. trade deficit in September, according to a new Commerce Department report.
The department said the goods and services deficit fell to $52.8 billion, down from $59.3 billion in August.
The improvement reflects rising U.S. exports and slower import growth in key sectors facing higher duties.
Commerce data shows exports increased to $289.3 billion while imports edged up to $342.1 billion.
The goods deficit narrowed to about $79 billion as tariff-targeted items showed the strongest shifts.
Shipments of steel, aluminum, machinery, and other tariff-affected categories declined or flattened as foreign suppliers absorbed higher costs.
Trade analysts said the pattern matches long-term expectations that tariff pressure would reduce imports and expand domestic production.
The report shows U.S. manufacturers increasing shipments of industrial supplies, machinery, and consumer goods, which helped lift exports.
Economists said the new figures mark a significant structural change rather than a short-term fluctuation.
The September gains follow earlier improvements recorded in August when expanded tariff schedules began redirecting trade flows.
Commerce tables show that several high-volume exporters saw reduced shipments into the United States as the cost of tariffs on affected goods climbed.
Supporters of the tariff strategy said the data confirm that the policy is working by narrowing the trade gap while strengthening U.S. industry.
The department found that import declines in tariff-sensitive categories outpaced increases elsewhere, contributing directly to the smaller deficit.
U.S. producers increased market share in several lines where foreign competition had previously dominated.
Economists said the combined effect of reduced imports and higher exports supports domestic employment and investment.
The report indicates that net exports may provide a positive contribution to economic growth after earlier quarters where trade weighed on gross domestic product.
Manufacturers reported higher demand for U.S.-made inputs and finished goods as buyers adjusted to the tariff landscape.
Commerce officials said the September results align with the administration's goal of reducing reliance on foreign supply chains.
The shift in trade flows shows foreign suppliers facing direct pricing pressure while U.S. producers benefit from a more level competitive field.
Supporters of the policy said the two-month pattern proves that targeted tariff enforcement can reshape trade without weakening broader economic activity.
The department said continued monitoring will track long-term effects as tariff structures remain in place.
Combined with recent manufacturing and jobs reports, government figures show that Trump's trade and business policies are working.
Manufacturing output increased in the latest Federal Reserve industrial production report, with gains in machinery and primary metals tied to stronger domestic sourcing under the tariff structure.
The Bureau of Labor Statistics employment report shows continued growth in manufacturing jobs as higher U.S. production offsets reduced foreign supply pressure.
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
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