WASHINGTON: The US trade gap narrowed more than expected in October, government data showed Thursday, as imports slipped more than exports.

Trade imbalances in the world’s biggest economy are anticipated to become a focal point of President-elect Donald Trump’s second administration as he returns to the White House in January.

Trump has pledged to lower US trade deficits and in his first term from 2017-2021 engaged in a bruising tariffs war with the world’s second-biggest economy, China

Overall in October, the US trade gap was down 11.9 percent to $73.8 billion, from a revised level of $83.8 billion in September, said the Commerce Department.

US trade deficit contracts as exports rise to record high

Behind the trend was a $14.3 billion drop in imports to $339.6 billion, the report said, with decreases seen in areas ranging from semiconductors to crude oil and consumer goods.

US exports also dipped though by a smaller amount of $4.3 billion to reach $265.7 billion in the month.

Declines in goods exports, such as those of autos, consumer goods and industrial supplies contributed to the trend, the Commerce Department added.

Among countries and regions, the US goods deficit with the European Union and Vietnam both decreased.

Weeks before he takes office, Trump has already threatened steep levies on neighbors Canada and Mexico, and on competitor China.