The US goods trade deficit will rise to a new record in 2025

The U.S. goods trade deficit widened to a new record in 2025, government data showed Thursday, despite sweeping tariffs imposed by President Donald Trump during his first year in the White House.The U.S. goods deficit last year was $1.24 trillion, up slightly from 2024 levels, the Commerce Department said.

But the goods trade gap with China narrowed for the year, data showed.When both goods and services are considered, the total U.S. trade deficit for 2025 fell to $901.5 billion, down from $903.5 billion in 2024.

In December, the overall deficit grew by 32.6 percent more than expected to $70.3 billion, while exports fell and imports rose.

Exports of industrial supplies, including non-monetary gold, fell, while imports in the same category rose this month.

US imports of capital goods such as computer accessories and telecommunications equipment picked up this month. Trade flows involving the world’s largest economy were severely affected in 2025 when Trump imposed new tariffs on goods from almost all trading partners after returning as president, as part of his drive to reduce the trade deficit.

His moves pushed the average effective rate to its highest level since the 1930s.

The deficit reduction with China also came after Trump engaged in tariff escalations with Beijing last year, although both countries have since cooled tensions.