Tariffs Aren't Shrinking the U.S. Trade Deficit
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President Trump on Wednesday touted the decline in U.S. trade deficit ahead of official data showing a small reduction in the country’s overall balance of trade. In a Wednesday night post on Truth Social,
The U.S. trade deficit edged down in 2025, narrowing to $901.5 billion from $903.5 billion in 2024 in a year marked by tariffs.
US trade deficit continued to widen in December after hitting the smallest monthly amount since the 2009 low in October.
The U.S. trade deficit slipped modestly in 2025, a year in which President Donald Trump upended global commerce by slapping double digit tariffs on imports from most countries. But the gap in the trade of goods such as machinery and aircraft — the main focus of Trump's protectionist policies — hit a record last year despite
Donald Trump’s global trade war has not had (as of yet anyway) the desired effect when it comes to America’s yawning trade deficit. In fact, the gap grew in December to $70.3 billion. This according to data from his own administration.
Trade with China remains a major driver of the US deficit, even as imports shift towards Southeast Asia and other partners.
The US trade deficit widened sharply in December, capping a volatile year shaped by tariff shifts, with the 2025 annual gap largely matching 2024 levels.
It’s the smallest trade deficit since June 2009.