US Goods Trade Deficit Reaches Record High of $1.24 Trillion in 2025
The United States goods trade deficit expanded to a historic level in 2025, reaching $1.24 trillion, according to official data from the Commerce Department. This figure marks a slight increase from the previous year, underscoring the persistent strength of imports despite the implementation of sweeping tariffs during President Donald Trump's first year back in office.
Monthly Trade Imbalance Widens in December
Separate data released by the US Census Bureau and the Bureau of Economic Analysis revealed that the overall goods and services trade deficit stood at $70.3 billion in December 2025. This represents a significant rise of $17.3 billion from a revised $53.0 billion in November.
The widening imbalance was driven by a decline in exports and an increase in imports. Exports in December totaled $287.3 billion, down $5.0 billion from the previous month, while imports climbed $12.3 billion to $357.6 billion.
This monthly increase reflected a $15.7 billion jump in the goods deficit to $99.3 billion, alongside a narrowing services surplus, which fell $1.6 billion to $29.0 billion.
Annual Trends Show Mixed Picture
For the full year of 2025, however, the combined goods and services deficit edged lower by $2.1 billion to $901.5 billion. This annual decline was supported by strong growth in both exports and imports.
Exports rose robustly by $199.8 billion, or 6.2 percent, to $3,432.3 billion, while imports increased $197.8 billion, or 4.8 percent, to $4,333.8 billion.
The reduction in the overall annual deficit was primarily due to a larger services surplus, which expanded by $27.6 billion to $339.5 billion. This growth partially offset a $25.5 billion increase in the goods deficit over the year.
Sectoral Analysis and Key Trading Partners
Trade flows exhibited mixed trends across different sectors. Goods exports were bolstered by gains in capital goods, computers, civilian aircraft, and industrial supplies. Conversely, imports surged in areas such as capital equipment, telecommunications gear, and computer accessories.
Services exports also strengthened, led by growth in business services, intellectual property charges, and financial services.
Monthly data indicated shifting trade balances with key international partners. In December, the United States recorded trade deficits with several countries:
- Taiwan: $19.8 billion
- Vietnam: $17.6 billion
- Mexico: $14.5 billion
- China: $12.4 billion
- European Union: $11.1 billion
Meanwhile, the US posted trade surpluses with the Netherlands, the United Kingdom, and Brazil during the same period.
Three-Month Average and Data Considerations
On a three-month average basis, the goods and services deficit widened to $50.7 billion by December 2025. This increase occurred as average imports rose while exports softened modestly.
The report noted that all figures were seasonally adjusted. It also highlighted that the next release schedule for trade data remains uncertain following a recent lapse in federal funding, which could impact future reporting timelines.
The record goods deficit in 2025, despite tariff measures, points to ongoing challenges in rebalancing US trade flows, with import demand remaining resilient across multiple sectors.
