The US trade deficit dropped in October to its lowest level since 2009, new data showed, as imports fell six months after US President Donald Trump’s “Liberation Day” tariffs.
Trump made reducing the deficit central to his economic policy, and the US “appears to be winning the trade war,” one analyst said, as tariffs curb imports but other countries keep buying American goods.
The drop in imports was largely fueled by pharmaceuticals — many drug companies frontloaded shipments in September after Trump threatened high tariffs, a reflection of the swings in global trade that defined 2025.
The sector may face another twist if the US Supreme Court rules Trump’s tariffs were issued illegally, a decision that could come as soon as Friday.
