The US trade deficit widened significantly in September as businesses increased imports to meet strong domestic demand and in anticipation of higher tariffs on goods.
The trade gap widened by 19.2% to $84.4 billion from a revised $70.8 billion in August, according to the Commerce Department's Bureau of Economic Analysis on Tuesday. Economists polled by Reuters had forecast the trade deficit widening to $84.1 billion from $70.4 billion previously reported in August.
Republican candidate Donald Trump has promised to impose a 60% tariff on goods from China and at least a 10% tax on all other imports if he wins the presidential election on Tuesday. Trump is currently in a tight race for the presidency with Vice President and Democratic Party nominee Kamala Harris.
Trade subtracted 0.56 percentage points from gross domestic product (GDP) in the third quarter. It has been a hindrance to economic growth for three consecutive quarters. The economy grew at an annual rate of 2.8% in the July-September quarter.
