WASHINGTON — The U.S. trade deficit in goods and services fell to $54.5 billion in January, declining 25% from the previous month as President Donald Trump’s tariffs continued to cause huge fluctuations in trade, according to data from the Commerce Department released Thursday.

Exports rose 5.5% in the month, to $302.1 billion, as the United States shipped gold, computers and other precious metals abroad. Imports fell 0.7% in January, to $356.6 billion. The combination reduced the monthly trade deficit, the gap between what the United States imports and what it exports.

Trump has long seen the U.S. trade deficit as a sign of economic weakness and has sought to bring it down by imposing tariffs. Economists have questioned the strategy, with many saying that the trade deficit is driven largely by other economic forces, like government spending or the value of the dollar.

Last year, the U.S. trade deficit in goods remained stubbornly high. It hit a record as the United States continued to import high-priced computer chips and weight-loss drugs, and importers stockpiled foreign goods ahead of tariffs going into effect.

In January, the rise in exports and drop in the trade deficit was driven in part by the trade in gold and precious metals. The price of gold soared over the past year as investors sought a haven for investment, and the gold trade helped propel volatile swings in U.S. imports and exports over the last year.

Gold Rose in January

In January, exports of gold and other precious metals rose by a combined $8.8 billion, far outpacing the increase in exports of American computers and aircraft, which rose by $4.2 billion. Overall U.S. goods exports rose $14.6 billion in the month.

The drop in imports in the month was driven by a $3.4 billion decrease in pharmaceutical imports, as well as sluggish trade in automotive vehicles, parts and engines.

The data provided a snapshot of trade under a tariff system that is now largely obsolete. On Feb. 20, the Supreme Court ruled that Trump exceeded his authority when he used an emergency law last year to impose steep tariffs on nearly every foreign nation.

The Trump administration was forced to withdraw the double-digit tariffs under that law, raising big questions about what would come next. The president had used the emergency law to impose tariffs on nearly a third of all U.S. imports, affecting more than $300 billion in goods.

Resurrecting Old Tariffs

The administration is now working on resurrecting its old tariffs, relying on a patchwork of other trade laws. Immediately following the Supreme Court decision, Trump announced a 10% global tariff, but that can only stay in place for 150 days without congressional approval.

On Wednesday, the Trump administration unveiled its plan for the tariffs it would turn to after the 10% levy expires. It announced a new investigation into 16 major trading partners for what it called “excess capacity” in their factory sectors, which it said had resulted in overproduction and large and persistent U.S. trade deficits with those nations. The Office of the United States Trade Representative said it would begin examining a range of policies that stoke those countries’ manufacturing sector to produce more than their own people consume.

USTR also said it would announce another trade investigation as soon as Thursday into 60 countries for their laws against forced labor, and that other investigations related to digital services and other issues could be on the way.

—

This article originally appeared in The New York Times.

By Ana Swanson/Mark Abramson
c. 2026 The New York Times Company