The U.S. trade deficit widened in November, likely as businesses worried about President-elect Donald Trump's threats to raise tariffs on foreign goods front-loaded imports, more than offseting a surge in exports to a record high.
The trade gap increased 6.2% to $78.2 billion from a revised $73.6 billion in October, the Commerce Department's Bureau of Economic Analysis said on Tuesday. Economists polled by Reuters had forecast the trade deficit widening to $78.0 billion from the previously reported $73.8 billion in October.
Exports advanced 2.7% to $273.4 billion, an all-time high. Goods exports increased 3.6% to $177.6 billion.
Trade has subtracted from GDP for three straight quarters. The Atlanta Federal Reserve is currently forecasting gross domestic product rising at a 2.4% annualized rate in the fourth quarter. The economy grew at a 3.1% pace in the July-September quarter.