The United States recorded a trade deficit of $70.3 billion in December, marking an increase of $17.3 billion from November and exceeding economists' expectation of $55.5 billion, according to Commerce Department data released on Thursday.
Looking at the full calendar year, the U.S. trade gap for 2025 reached $901.5 billion. That annual total represents a marginal contraction of 0.2% - a decrease of $2.1 billion compared with 2024 - and remains below the peak deficit of $923.7 billion recorded in 2022.
Policy moves aimed at narrowing trade imbalances were implemented during the year. In April, the administration put a 10% duty on all imports and applied targeted reciprocal tariffs against specific countries with trade surpluses versus the United States. The administration has since softened many of those positions, and negotiations with major trading partners are ongoing.
Regionally, the largest goods deficits for the United States in 2025 were with the European Union at $218.8 billion, China at $202.1 billion, and Mexico at $196.9 billion.
Trade flows rose overall in 2025. U.S. exports totaled $3.43 trillion for the year, up by $199.8 billion from 2024. Imports climbed to $4.33 trillion, an increase of $197.8 billion versus the prior year.
Key points
- December trade deficit: $70.3 billion, a $17.3 billion increase from November and above the $55.5 billion economist forecast.
- Annual 2025 deficit: $901.5 billion, down 0.2% or $2.1 billion from 2024 and below the 2022 record of $923.7 billion.
- Trade flow changes: exports rose to $3.43 trillion (+$199.8 billion) and imports to $4.33 trillion (+$197.8 billion) in 2025.
Market and sector implications
- Goods-focused sectors and industries linked to cross-border trade - including manufacturing, consumer goods distribution, and logistics - are directly tied to the reported shifts in exports and imports.
- Regions with the largest bilateral deficits - the European Union, China, and Mexico - are central to trade relationships that affect U.S. goods flows and corporate supply chains.
Risks and uncertainties
- Policy uncertainty: The article notes that while tariffs were introduced, many positions have been softened and negotiations continue, creating uncertainty for businesses dependent on stable trade rules.
- Persistent bilateral deficits: Large deficits with the EU, China, and Mexico pose ongoing exposure for sectors reliant on imports or export access to those markets.
- Volatility in trade flows: While both exports and imports rose in 2025, month-to-month swings - such as December's larger-than-expected deficit - can introduce short-term revenue and cost pressures for exporters and importers.
The Commerce Department data underscore a year in which headline annual trade imbalance barely moved while monthly variation produced a marked widening at year end. Policymakers and market participants will be watching ongoing negotiations and any further shifts in tariff posture that could influence trade patterns and sector-level outcomes.