📊 U.S. International Trade in Goods and Services: October 2025 Report

January 8, 2026

The latest official data shows that the U.S. international trade deficit in goods and services narrowed sharply in October 2025, with both exports rising and imports falling, but the report does not provide forward-looking projections or sector-specific business impacts.

Key Findings and Explanations

1. Headline Numbers: The Trade Deficit Shrinks

  • Deficit: The U.S. goods and services trade deficit was $29.4 billion in October 2025, down $18.8 billion from September’s revised deficit of $48.1 billion (seasonally adjusted).
    • The deficit is the difference between what the U.S. imports (buys from abroad) and exports (sells abroad). A smaller deficit means the gap between imports and exports has narrowed.
  • Exports: Total exports were $302.0 billion in October, up $7.8 billion from September.
  • Imports: Total imports were $331.4 billion, down $11.0 billion from September.

2. Year-to-Date Trends

  • Deficit: For the year to date, the goods and services deficit increased by $56.0 billion (7.7%) compared to the same period in 2024.
  • Exports: Year-to-date exports rose by $168.6 billion (6.3%).
  • Imports: Year-to-date imports increased by $224.6 billion (6.6%).

3. Goods vs. Services Breakdown

  • Goods Deficit: The goods deficit decreased by $19.2 billion to $59.1 billion in October.
  • Services Surplus: The services surplus decreased slightly by $0.4 billion to $29.8 billion.

What are goods and services in this context?

  • Goods are physical items (e.g., cars, computers, oil) traded internationally.
  • Services include things like travel, financial services, insurance, and intellectual property.

4. Exports: What Drove the Increase?

  • Goods Exports: Increased by $7.1 billion to $195.9 billion in October.
    • Industrial supplies and materials: Up $10.2 billion (notably, nonmonetary gold up $6.8 billion, other precious metals up $3.6 billion).
    • Other goods: Down $1.8 billion.
    • Consumer goods: Down $1.0 billion (pharmaceutical preparations down $0.9 billion).
  • Services Exports: Increased by $0.7 billion to $106.1 billion.
    • Travel: Up $0.4 billion.
    • Charges for use of intellectual property: Up $0.2 billion.
    • Other business services: Up $0.2 billion.

5. Imports: What Drove the Decrease?

  • Goods Imports: Decreased by $12.1 billion to $255.0 billion.
    • Consumer goods: Down $14.0 billion (pharmaceutical preparations down $14.3 billion).
    • Industrial supplies and materials: Down $2.7 billion (nonmonetary gold down $1.4 billion).
    • Capital goods: Up $6.8 billion (computer accessories up $3.7 billion, telecommunications equipment up $1.9 billion).
  • Services Imports: Increased by $1.1 billion to $76.3 billion.
    • Travel: Up $0.9 billion.
    • Other business services: Up $0.2 billion.
    • Insurance services: Up $0.1 billion.
    • Transport: Down $0.2 billion.

6. Real vs. Nominal Trade Figures

  • Real goods deficit (adjusted for inflation, in 2017 dollars): Decreased by $15.6 billion (19.8%) to $63.1 billion in October.
    • Real exports of goods: Up $5.9 billion (3.9%) to $158.9 billion.
    • Real imports of goods: Down $9.7 billion (4.2%) to $222.0 billion.

What does “real” mean here?

  • “Real” values are adjusted for inflation, showing the actual volume of goods traded, not just the dollar value.

7. Geographic and Country-Specific Highlights

  • Quarterly surpluses (Q3 2025): U.S. had surpluses with the Netherlands ($20.6B), South and Central America ($18.3B), Brazil ($9.2B), Singapore ($8.9B), Switzerland ($8.6B), Hong Kong ($6.2B), United Kingdom ($5.4B), Australia ($5.2B), Saudi Arabia ($3.3B), and Belgium ($3.0B).
  • Quarterly deficits: Largest with Mexico ($50.3B), Vietnam ($44.2B), China ($33.1B), Taiwan ($34.4B), Germany ($15.8B), India ($14.1B), South Korea ($10.8B), Japan ($10.6B), European Union ($9.7B), Ireland ($7.4B), Malaysia ($6.0B), Italy ($5.9B), Canada ($4.7B), France ($3.1B), and Israel ($1.2B).

8. Revisions and Adjustments

  • Revisions: Exports and imports for April–September 2025 were revised to reflect updated data.
    • September exports of goods: Revised up by $1.2 billion.
    • September imports of goods: Revised up by $0.6 billion.

9. Three-Month Moving Averages

  • Deficit: The average goods and services deficit for the three months ending in October was $44.4 billion, down $15.0 billion from the previous period.
  • Average exports: Up $6.0 billion to $293.4 billion.
  • Average imports: Down $9.0 billion to $337.8 billion.

10. Definitions and Methodology

  • Balance of Payments (BOP) basis: The data is presented on a BOP basis, which means it is adjusted to reflect international standards for measuring trade.
  • Seasonal adjustment: Most figures are seasonally adjusted, meaning they account for regular fluctuations throughout the year (like holiday shopping or harvest seasons).

💡 Summary

The October 2025 U.S. International Trade in Goods and Services report shows a significant narrowing of the trade deficit, driven by higher exports (especially in industrial supplies and materials) and lower imports (notably in consumer goods). The services sector continues to provide a surplus, though it narrowed slightly. Year-to-date, both exports and imports are up compared to 2024, but imports have grown faster, widening the overall deficit for the year. The report also highlights key trading partners, with the U.S. running large deficits with countries like Mexico, Vietnam, and China, and surpluses with others such as the Netherlands and Brazil. All data is carefully adjusted for seasonality and, where noted, for inflation, providing a clear picture of the current state of U.S. international trade.

To provide you with even more relevant insights, it would help to know more about your economic profile and objectives. For example, are you most interested in how these trade trends aff

References:

  1. U.S. International Trade in Goods and Services, U.S. Census Bureau