WASHINGTON: The U.S. trade deficit totaled $901.5 billion in 2025, barely changed from $903.5 billion in 2024, as higher exports and higher imports largely offset each other despite new tariffs imposed during President Donald Trump’s return to office. The annual figures, released Feb. 19 by the Commerce Department, combine trade in goods and services and are reported on a balance of payments basis.
Exports climbed $199.8 billion, or 6.2%, to $3.432 trillion, while imports rose $197.8 billion, or 4.8%, to a record $4.334 trillion. The report also showed the deficit widened to $70.3 billion in December from $53.0 billion in November, reflecting $287.3 billion in exports and $357.6 billion in imports for the month.
The near-flat annual headline masked a sharper split between goods and services. The goods deficit widened to $1.241 trillion in 2025, the highest on record, while the services surplus grew to $339.5 billion, also a record. In December, the goods deficit rose to $99.3 billion and the services surplus slipped to $29.0 billion, contributing to the wider monthly gap.
Goods flows drove the annual change
Imports of goods increased $143.2 billion to $3.438 trillion in 2025. Capital goods led the rise, up $165.9 billion, including higher imports of computers, computer accessories and telecommunications equipment. Industrial supplies and materials increased $23.3 billion, while “other goods” rose $18.5 billion. Automotive vehicles, parts and engines declined $52.0 billion for the year, with decreases including passenger cars.
Exports of goods increased $117.7 billion to $2.198 trillion in 2025. Capital goods exports rose $63.9 billion, including gains in computers, civilian aircraft, computer accessories and civilian aircraft engines. Industrial supplies and materials exports increased $55.8 billion, with higher nonmonetary gold, finished metal shapes and natural gas, while crude oil exports declined. Exports of services rose $82.1 billion to $1.235 trillion, with increases including other business services, charges for the use of intellectual property and financial services.
Deficits shifted among top partners
Country-level goods data showed large changes in where the U.S. ran its biggest deficits. The goods deficit with China totaled $202.1 billion in 2025, down from $295.5 billion in 2024, based on Census Bureau figures that are not seasonally adjusted. At the same time, deficits with several other partners reached new highs, including $196.9 billion with Mexico, $178.2 billion with Vietnam and $146.8 billion with Taiwan, while the deficit with Canada was $46.4 billion.
The tariff backdrop was prominent throughout 2025. Trump signed Executive Order 14257 on April 2, 2025, establishing a reciprocal tariff framework with country-specific rates listed in an annex, and subsequent actions adjusted the schedule later in the year. The trade report was released after a delay tied to a lapse in federal funding, and it incorporates balance of payments adjustments and revisions that affect the composition of exports and imports reported across goods and services. – By Content Syndication Services.