Tariffs Failed: US Trade Deficit Remains High in 2025

The U.S. Trade deficit totaled $70.3 billion in December, up $17.3 billion from the revised November figure of $53.0 billion, according to data released Thursday by the U.S. Census Bureau and the U.S. Bureau of Economic Analysis. The December increase was driven by a $15.7 billion rise in the goods deficit to $99.3 billion and a $1.6 billion decrease in the services surplus, which fell to $29.0 billion.

Despite President Donald Trump’s aggressive trade policies, including the imposition of double-digit tariffs on imports from most countries, the full-year trade deficit for 2025 slipped only modestly to just over $901 billion, down from $904 billion in 2024. The Commerce Department reported that exports rose 6% last year, although imports increased nearly 5%.

For the entirety of 2025, the U.S. Goods and services deficit decreased by $2.1 billion, or 0.2 percent, compared to 2024. Exports increased by $199.8 billion, a 6.2 percent rise, while imports grew by $197.8 billion, or 4.8 percent. The trade gap initially surged between January and March as U.S. Companies accelerated imports in anticipation of the new tariffs, before narrowing for the remainder of the year.

The average goods and services deficit for the three months ending in December increased by $7.5 billion to $50.7 billion. Average exports decreased by $2.2 billion to $294.1 billion during the same period, while average imports increased by $5.3 billion to $344.8 billion. Year-over-year, the average goods and services deficit decreased by $32.9 billion for the three months ending in December 2025.

According to the Bureau of Economic Analysis, the next release of trade data is currently delayed due to the recent lapse in federal funding. No new date has been announced.