US Trade Deficit Rises Amid Tariff Volatility, Government Shutdown Looms, and Tesla Shifts Focus
The U.S. trade deficit in goods and services widened to $56.8 billion in November, a 9.5% increase from the previous month, according to Commerce Department data released Thursday. This surge occurred as President Trump's tariffs continued to cause significant fluctuations in trade, according to the New York Times. Simultaneously, talks intensified in Washington D.C. to avert a U.S. government shutdown, with disagreements centering on funding for the Department of Homeland Security (DHS), the BBC reported. In other news, Tesla announced a shift in focus towards artificial intelligence (AI) and robotics, leading to a decrease in annual revenue and the discontinuation of Model S and Model X car models, according to BBC Technology.
Exports experienced a 3.6% decline in November, reaching $292.1 billion, primarily due to decreased shipments of gold, pharmaceuticals, consumer goods, and crude oil, the NY Times reported. Conversely, imports rose by 5% to $348.9 billion as Americans increased purchases of foreign pharmaceuticals and equipment for data centers. The combination of these factors contributed to the expanded monthly trade deficit, the difference between U.S. imports and exports.
Meanwhile, negotiations to prevent a government shutdown centered on Democratic efforts to remove funding for the DHS from a $1.2 trillion government spending package, the BBC reported. This push followed the fatal shooting of 37-year-old Alex Pretti in Minneapolis on Saturday. U.S. media reported that the White House and Senate Democratic leadership were nearing an agreement.
In the business world, Tesla reported a 3% decrease in total revenues in 2025, with profits falling 61% in the last three months of the year, according to BBC Technology. The company plans to repurpose its California manufacturing plant, previously used for Model S and Model X vehicles, to produce its humanoid robots, known as Optimus. This shift comes as China's BYD surpassed Tesla as the world's largest EV maker in January.
Separately, Wayfair launched its "5 Days of Deals" event, offering discounts of up to 78% on furniture for various rooms, Fox News reported. The sale includes savings on couches, bed frames, and dining tables, with deals available for a limited time. Specific deals include a farmhouse rectangular lift top coffee table for $349.99 (65% off) and a Wayfair Sleep 10-inch medium gel memory foam mattress for $255.99 (43% off).
The fluctuating trade landscape has also impacted businesses like Loloi, a rug company based in Dallas. Even before President Trump's tariff policy, Loloi began stockpiling inventory to support growth plans, anticipating potential import taxes, according to the NY Times. "We were bursting to the seams in our distribution centers," said Amir Loloi, the company's founder and chief executive.
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