US trade deficit narrows in October amid tariff-driven shifts.

The U.S. trade deficit fell to $29.4 billion in October, a 39% decline from September, as imports fell and exports rose; Wells Fargo economists say the change was largely driven by movements in gold and may be reversed.

The U.S. trade gap narrowed in October, according to a Commerce Department report released Jan. 8. The October trade deficit in goods and services was $29.4 billion, down 39% from $48.1 billion in September. Imports declined while exports increased in the month amid tariff-related shifts and other changes in trade flows. Some analysts say this single-month move may reflect unusual factors rather than a sustained trend. Key points: - The trade deficit was $29.4 billion in October, down 39% from $48.1 billion in September. - Imports fell 3.2% to $331.4 billion, and exports rose 2.6% to $302 billion. - The Trading Economics consensus had expected a wider deficit of $58.9 billion. - Wells Fargo economists said the sharp narrowing was almost entirely due to movement of gold and that this unusual move is likely to be reversed. - Wells Fargo also noted that government economic indicators remain affected by delays from the shutdown and that a fuller look at 2026 trade flows is still months away. Summary: The October figures show a notably smaller headline trade gap but include caveats from analysts about atypical movements behind the change. Officials and economists say updates to delayed data are ongoing, and a clearer picture of 2026 trade flows is not expected for several months.