US Trade Deficit Nearly Doubles in November

The U.S. trade deficit with its global partners expanded dramatically in November, nearly doubling after hitting a multi-year low the previous month. According to a Thursday report from the Census Bureau, the trade gap surged to $56.8 billion.

This 94.6% month-over-month increase marks a sharp reversal from October, when the deficit had fallen to its lowest point since early 2009.

Key Drivers: EU Gap Swells, China Deficit Narrows

A significant portion of this growth came from trade with the European Union. The goods deficit with the EU widened by $8.2 billion, accounting for about a third of the total increase. In contrast, the goods deficit with China saw a slight decrease of approximately $1 billion, settling at $13.9 billion.

On a year-over-year basis, the trade imbalance remains a persistent issue. The total deficit through November stood at $839.5 billion, representing a 4% increase compared to the same period in 2024.

Trump's Tariff Policy Under Scrutiny

The widening deficit runs counter to President Donald Trump's stated goal of using tariffs to correct global trade imbalances. When the White House announced "reciprocal tariffs" in April 2025, it used existing trade deficits with various countries as a primary benchmark for setting the duties.

However, the administration's stance appeared to soften as the year progressed. A framework agreement reached with the EU in August aimed to stabilize trade relations, establishing a 15% tariff rate on most European goods.