The U.S. trade deficit narrowed sharply in October as exports surged and imports remain squeezed by supply chain bottlenecks, the U.S. Commerce Department reported on Tuesday.

The U.S. exported $223.6 billion worth of goods, $16.8 billion more than the figures for September, while imports rose slightly by 0.9% to $290.7 billion. The trade deficit stood at $67.1 billion, down 17.6%.

Trade with China was at a deficit of $28.3 billion, falling by $3.2 billion as U.S. exports rose $2.8 billion to $13.8 billion. Imports from China fell slightly by $400 million.

Trade with China has consistently been the most politically contentious of U.S. deficits. Beijing’s manipulation of its currency, its support for state-run companies, and regulations that raise the bar for foreign companies to do business in the country have prompted anger on both sides of the aisle in the U.S. Congress.

However, for all the scrutiny and the ongoing trade war between the two, the U.S.-China trade deficit has expanded throughout the pandemic. Trade deficits were also recorded with other nations, including the European Union, South Korea, Mexico, Japan and Saudi Arabia.

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