A new report shows a much lower U.S. trade deficit as tariffs restricted both imports and exports, but some experts say the effects may be temporary.

The U.S. economy may be on track to post an exceptionally strong expansion in the fourth quarter of 2025, helped in large part by a sharp narrowing in the trade deficit following tariffs implemented under President Donald Trump.

The U.S. trade deficit shrank in October to its lowest level since 2009, an unexpected twist in a year of volatile trade flows buffeted by tariffs. Imports fell to $331.4 billion, while exports increased to $302 billion.

Janet Yellen told Newsweek that exempting U.S. firms from new global taxation rules had sacrificed "significant tax revenue.”

The U.S. trade deficit contracted sharply in October, hitting ​the lowest level since mid-2009 as ‍imports declined, a trend that if sustained could see trade again adding to economic growth in the fourth quarter.