US Trade Deficit Hits 16-Year Low Following Liberation Day Tariffs

The USA trade deficit plummeted to $29.4 billion in October 2025, the lowest level since 2009, following the implementation of Donald Trump’s Liberation Day tariffs.The 39 percent monthly decrease was driven by a 3.2 percent drop in imports as pharmaceutical companies frontloaded shipments in September to avoid high duties.While the administration credits its trade strategy, economists at Wells Fargo warn of potential reversals as the Supreme Court prepares to rule on the legality of the tariffs.