The numbers: The U.S. trade deficit in goods climbed 5.5% in November to a new record high, reflecting weaker U.S. exports tied to the coronavirus pandemic.
The goods trade gap widened to $84.8 billion in November from a revised $80.4 billion in October, the government said Wednesday.
What happened: Imports of goods such as consumer electronics and industrial supplies rose 2.6% to $212 billion in November.
Goods imports were up 5.5% compared with a year earlier.
Exports rose less than 1% to $127.2 billion, however, and they are down 6.6% compared with one year ago.
The widening trade deficit largely stems from the different pace of economic recovery in the U.S. and many of its major trading partners. The American economy has rebounded more strongly, and consumer spending has mostly returned to normal.
As a result, the U.S. is actually importing more foreign-made goods than it was a year ago. Exports, on the other hand, have lagged because certain trade partners’ economies have not recovered.
A fuller report on the U.S. trade deficit that includes services such as tourism and finance will be issued next week. The U.S. has usually run a strong surplus in services because of tourism, but services have suffered a blow during the pandemic.
Big picture: Large U.S. trade deficits have persisted for years and aren’t going away anytime soon despite a major effort by the outgoing Trump administration to lower the gap.
Exports are likely to improve, on the other hand, as the coronavirus pandemic fades, other countries catch up economically and foreign customers can afford to buy more American-made goods.
A relaxing of trade tensions under the incoming Biden administration could also help. Exports of U.S. goods such as whiskey have suffered from retaliatory tariffs in Europe and elsewhere.
Market reaction: The Dow Jones Industrial Average
DJIA,
+0.50%
and S&P 500
SPX,
+0.45%
were set to open higher in Wednesday trades.
