The trade deficit of the USA expanded in November, with the increase in imports reaching its largest rise since March 2022, as companies accelerated shipments before potential strikes by dock workers and possible tariffs imposed by the Trump administration. Data from the US Department of Commerce showed on Tuesday that the trade deficit rose by 6.2% in November compared to the previous month, reaching 78.2 billion USD, with imports increasing by 3.4% and exports rising by 2.7%. The scope of the import surge was broad, including increases in imports of Consumer goods, capital equipment, and motor vehicles, which may reflect that US companies prefer to ensure shipments before potential tariffs are imposed. Additionally, many companies hope to mitigate disruptions caused by possible dock worker strikes ahead of a mid-January deadline for reaching an agreement. Trade in goods and services in the third quarter dragged down GDP, and the latest data suggests that the final quarter of 2024 may also have a similar impact. US manufacturers and service providers continue to face challenges from weak overseas economies and a strengthening dollar, which may lead to the trade deficit continuing to expand this year.
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