US Trade Deficit Shrinks More Than Expected in January Amid Tariff Uncertainty

America. US government data released Thursday showed that the trade deficit in January shrank more than analysts had expected.

According to the Commerce Department, the trade deficit in January reached $54.5 billion, an increase from December's $25.3 billion. The trade flow in the world's largest economy, the US, has been affected by rapid changes in tariffs implemented by President Donald Trump after his return to the White House last year, although the Supreme Court struck down a large portion of them last month.

The data reflects a tax system that is now outdated. Trade uncertainty continues to overshadow the results.

Following the court's decision, President Trump imposed a temporary 10 percent tariff on various imports, but the EU stated it was committed to adhering to the Trump agreement.

On Wednesday, the US administration announced new investigations into dozens of trade partners, signaling a desire to revive its long-standing trade agenda.

Exports rose 5.5 percent to $302.1 billion, driven by capital goods ranging from industrial supplies and computers to civil aircraft. However, exports of consumer goods such as medicine declined. Meanwhile, US imports fell 0.7 percent to $356.6 billion.