US imports from Asia declined in September, reducing the trade deficit with Asian nations while Southeast Asia's imports increased.
US imports of goods from Asia fell in September as President Donald Trump's tariffs impacted transpacific trade, narrowing the goods deficit with Asian nations by 5.3 percent to US$61 billion, reported Saint Petersburg's PortNews.
Despite the decline in imports from Asia, the global goods deficit widened as higher imports from the EU, Mexico, and Canada offset the slowdown. The combined goods-and-services deficit narrowed to US$52.8 billion, driven by non-monetary gold exports and a modest rise in financial services.
Imports from China dropped by $4 billion to $11.4 billion, while US exports to China increased by $200 million amid ongoing negotiations. Conversely, imports from Southeast Asia, including Vietnam, Thailand, and Indonesia, edged up following new tariff announcements.
President Trump's reciprocal tariffs took effect in August, with some smaller Southeast Asian economies facing levies of 40 percent, lower than the 49 percent indicated in April. As a result, firms delayed shipments in response to the changing tariff landscape.
US goods exports rose by $8.8 billion to $187.6 billion, supported by demand for gold and oil. Notably, imports of US pharmaceutical goods nearly doubled to more than $28 billion. Paul Ashworth of Capital Economics noted that without a $12.9 billion surge in pharmaceutical imports, overall goods imports would have reached a two-and-a-half-year low.
The report, delayed by a 43-day federal government shutdown, highlighted the volatility associated with shifting tariffs. Average US consumer tariff exposure reached 16.8 percent, with Japan and South Korea securing lower rates, while India faced 50 percent, Taiwan 20 percent, and China 47.5 percent following an adjustment in October.
Although US measures have curtailed Chinese shipments, China has expanded its exports elsewhere, lifting its annual trade surplus above US$1 trillion, according to official data. The durability of US tariffs remains uncertain as the Supreme Court reviews their legality under the 1977 International Emergency Economic Powers Act.
