U. S. Trade Gap Shrinks: What's Really Going On?

USAThu Jan 08 2026
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The U. S. trade gap has been shrinking. In October, it hit its smallest size since 2009. This is after new trade rules were put in place. Exports went up by 2. 6%. Imports went down by 3. 2%. This means the U. S. is selling more stuff to other countries. And buying less from them. But, it's not all good news. The trade gap is still bigger than last year. It's up by 7. 7% compared to 2024. Some experts thought the new trade rules would cause problems. They worried other countries would retaliate. But so far, that hasn't happened.
The U. S. seems to be doing well in this trade war. Imports are down. Exports are up. Other countries are still buying American goods. This is good for the economy. It might even help avoid a recession. Productivity is also on the rise. In the third quarter, it went up by 4. 9%. This means companies are doing more with less. It's good for the economy. It keeps inflation low. Hiring has been slow. But layoffs are also low. This is a good sign. It shows the economy is still strong.
https://localnews.ai/article/u-s-trade-gap-shrinks-whats-really-going-on-41f1eb4a

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