US Trade Deficit Swells to $70.3B in December, Little Changed for 2025

by Chief Editor

The U.S. Trade deficit increased in December, concluding a year marked by a largely unchanged imbalance despite the Trump administration’s efforts to reduce it. The December shortfall totaled $70.3 billion, according to the Commerce Department, a rise of $17.3 billion from November.

Trade Deficit in 2025

For the full year 2025, the U.S. Trade deficit reached $901.5 billion. This figure represents a slight decrease of 0.2%, or $2.1 billion, compared to 2024, but remains below the record $923.7 billion shortfall recorded in 2022.

Did You Know? In April, President Trump announced an across-the-board duty of 10% on all imports, as well as reciprocal tariffs targeting countries with trade surpluses against the U.S.

Throughout the year, President Trump implemented tariffs intended to address trade imbalances. However, many of these positions were later adjusted and negotiations with trading partners continued. Companies responded to the potential tariffs by accelerating imports during the first three months of the year, a trend that lessened later in the year, with October seeing the lowest monthly deficit since 2009.

The largest U.S. Goods deficits were with the European Union ($218.8 billion), China ($202.1 billion), and Mexico ($196.9 billion). U.S. Exports totaled $3.43 trillion for 2025, an increase of $199.8 billion from the previous year. Imports too rose, reaching $4.33 trillion, up $197.8 billion.

Expert Insight: The slight decrease in the overall trade deficit, despite the implementation of tariffs, suggests the complex interplay of factors influencing international trade. The initial surge in imports to preempt tariffs, followed by a slowdown, demonstrates how businesses adapt to changing trade policies.

Frequently Asked Questions

What was the U.S. Trade deficit in December?

The U.S. Trade deficit in December totaled $70.3 billion, an increase of $17.3 billion from November.

With which countries did the U.S. Have its largest trade deficits?

The U.S. Had its largest goods deficits with the European Union ($218.8 billion), China ($202.1 billion), and Mexico ($196.9 billion).

Did U.S. Exports or imports increase more in 2025?

Imports increased by $197.8 billion, although exports increased by $199.8 billion.

As trade negotiations continue and global economic conditions evolve, what impact might future tariff adjustments have on the U.S. Trade balance?

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