US trade deficit in goods hits record $1.24 trillion in 2025 despite tariffs

The US trade deficit in goods reached a record $1.24 trillion in 2025, government data shows, despite widespread tariffs imposed by President Donald Trump during his first year back in the White House.

While the overall US trade deficit (goods and services combined) narrowed slightly to $901.5 billion, the gap in goods with China contracted as imports from Beijing fell by 30%.

Key developments:

• December deficit surged 32.6% to $70.3 billion, driven by higher imports and lower exports.

• High-tech imports, including advanced semiconductors from Taiwan, rose, supporting the US artificial intelligence sector.

• Tariff exemptions on electronics, such as smartphones, and shifting supply chains to countries like Vietnam influenced overall trade flows.

• Analysis from the New York Federal Reserve indicates nearly 90% of tariff costs fell on US firms and consumers.

ℹ️ Le Monde with AFP

Follow on social media TikTok@tut0ughInstagram@tut0ugh Threads@tut0ugh X@tut0ugh YouTube@tut0ugh

Click to subscribe to the Weekly Brief by tut0ugh
The US trade deficit in goods widened in 2025, but the gap with China narrowed in the full year, government data shows  © Patrick T. Fallon / AFP/File
Ethiopia–Eritrea tensions: Getachew Reda rejects claims of imminent conflict
US trade deficit in goods hits record $1.24 trillion in 2025 despite tariffs
Posted in