Trump hails sharp fall in US trade deficit, calls tariff policy an ‘unprecedented success’

US President Donald Trump.

• US trade deficit fell to $29.4 billion in October, lowest since 2009
• Exports rose 2.6 percent and imports dropped 3.2 percent in October
• Trump credits tariff policy for trade gap decline and economic growth

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US President Donald Trump on Friday welcomed newly released economic data showing a sharp decline in the country’s trade deficit, calling it the lowest level since 2009 and crediting his tariff policy for the improvement.

Sharing a post on the figures, Trump described the data as an “unprecedented success” for the United States.

“BREAKING NEWS: Numbers released today show that the United States of America has the lowest Trade Deficit since 2009, and is going even lower. In addition, our Nation’s Gross Domestic Product (GDP) is predicted to come in at over 5%, and that is after losing at least 1.5 per cent to the Democrat ‘Shutdown.’ These incredible numbers, and the unprecedented SUCCESS of our Country, are a direct result of TARIFFS, which have rescued our Economy and National Security,” Trump wrote.

"BREAKING NEWS: Numbers released today show that the United States of America has the lowest Trade Deficit since 2009, and going even lower... These incredible numbers, and the unprecedented SUCCESS of our Country, are a direct result of TARIFFS" - President Donald J. Trump 🇺🇸 pic.twitter.com/k3e0FbKfLC

— The White House (@WhiteHouse) January 9, 2026

According to data released by the US Commerce Department on Thursday, the country’s trade deficit narrowed sharply in October, falling to $29.4 billion. This marked a 39 per cent decline from the previous month and the smallest trade gap since the second quarter of 2009, when the US economy was emerging from the global financial crisis.

The improvement was driven by a rise in exports and a decline in imports. Exports increased 2.6 per cent during the month, while imports fell 3.2 per cent, the data showed.

The figures reflect trade trends six months after Trump introduced his tariff policy in April 2025. At the time, several economists warned that the measures could trigger retaliation and slow global trade. However, Trump later eased some of his harsher tariff threats, and the latest data points to sustained demand for American goods.

Despite the recent decline, the cumulative US trade deficit for the year so far remains 7.7 per cent higher than in the same period last year, according to the Commerce Department.

Separate data from the Bureau of Labour Statistics showed productivity surged at an annual rate of 4.9 per cent in the third quarter. The increase in productivity helped push unit labour costs down by 1.9 per cent, suggesting that wage pressures are not currently fuelling inflation.