Trade deficits were volatile throughout 2025 as importers responded to President Trump's shifting tariff announcements.

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.

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,

It’s the smallest trade deficit since June 2009.

The US trade deficit in goods expanded to a new record in 2025, government data showed Thursday, despite sweeping tariffs that President Donald Trump imposed during his first year back in the White House.

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.

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.

Data released Thursday by the Census Bureau showed the overall trade deficit with the world narrowed, the result of an expanding trade surplus in services. The trade deficit in goods was the highest on record.

Key Takeaways President Donald Trump’s tariff policies did little to shrink the overall 2025 trade deficit.However, deficits did fall with several major U.S. trading partners including Canada, Japan and South Korea,