The U.S. trade deficit climbed in October from its lowest monthly level in nearly three years, The Associated Press reports.
Imports of consumer goods such as medicine, cellphones and clothing increased, while exports of soybeans, gold and artwork tumbled—which fueled the widening of the monthly trade gap.
The Commerce Department says the deficit rose to $42.6 billion in October, up 17.8% from September. The $36.2 billion trade deficit in September was the lowest since December 2013.
Reducing the trade deficit has become a primary focus of President-elect Donald Trump, who cites the trade imbalance as evidence that the United States has signed misguided trade agreements that have hurt U.S. economic growth and cost jobs.
In the wake of an agreement last week to keep 800 jobs at the Carrier furnace factory in Indianapolis from going to Mexico, Trump has promised to lower corporate tax rates to preserve factory jobs inside the United States, while threatening harsh penalties for companies that produce goods overseas to save on labor costs. He warned that he will impose a 35% tariff on the goods imported by companies that outsource production.
So far this year, the trade deficit is running 2.1% below its 2015 levels. The United States has been exporting more food but fewer industrial supplies, oilfield equipment, autos and consumer goods. But the country has also cut back on imports of steel, oil, aircraft, computer accessories and televisions, among other goods, leading to a narrowing of the overall trade deficit.
