(Jan 7): The US trade deficit widened in November, reflecting 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.

The gap in goods and services trade grew 6.2% from the prior month to US$78.2 billion (RM351.75 billion), Commerce Department data showed on Tuesday. The figure was in line with the median projection in a Bloomberg survey of economists.

The value of imports increased 3.4% from a month earlier to US$351.6 billion. Exports rose 2.7%. The figures aren’t 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. Moreover, 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.

US 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.

On an inflation-adjusted basis, the merchandise trade deficit widened to US$96.5 billion in November.

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