Durrant Pate/Contributor

The US trade deficit widened in November 2024 registering a month-over-month increase of 6.2% to US$78.2 billion, according to data released Friday by the US Commerce Department.

Bloomberg is reporting that this growth in the trade deficit comes amid the biggest jump in imports since March 2022, as companies accelerated shipments ahead of a possible dockworkers’ strike and in anticipation of potential tariffs by the Trump administration. This figure is in line with the median projection in a Bloomberg survey of economists.

However, on an inflation-adjusted basis, the merchandise trade deficit widened to US$96.5 billion in November. The value of imports increased 3.4% from a month earlier to US$351.6 billion, as exports rose by 2.7%. 

Avoiding possible tariff hike

However, the raw data is not adjusted for inflation. The jump in imports was broad, including increases in consumer goods, capital equipment and motor vehicles, likely reflecting a preference by US companies to secure shipments in advance of potential tariffs. 

Bloomberg reports that many are hoping to mitigate disruptions from a potential strike by dockworkers with a mid-January deadline to reach a deal.

The figures follow an October downshift in demand for foreign merchandise after companies doubled up efforts to ensure they were well-stocked ahead of holiday shopping season. Goods and services trade in the third quarter subtracted from gross domestic product, and the latest net exports figures suggest a similar impact is possible in the final three-month period of 2024. American manufacturers, as well as service providers, remain challenged by weak overseas economies and a strong dollar that risk keeping the trade gap wide this year.