What Explains the Trade Deficit Hitting a Decade-High?

WASHINGTON—The U.S. trade deficit reached its highest level in 10 years in October, led in part by tax-cut-driven domestic demand and a potentially tariff-related fall in exports.

The foreign-trade gap in goods and services rose 1.7% from the prior month to a seasonally adjusted $55.5 billion in October, the Commerce Department said Thursday. This is the largest deficit since October 2008. Imports grew 0.2% in October, while exports edged down 0.1%. The nonoil deficit is at a record level and “rising steadily,” said Ian Shepherdson,...