US trade deficit declined in 2025, but gap for goods hits a record despite Trump tariffs

Associated Press (AP)EN 2 min read 100% complete by By PAUL WISEMANFebruary 19, 2026 at 04:53 PM

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In 2025, the U.S. trade deficit modestly decreased to just over $901 billion, but the gap for goods reached a record $1.24 trillion despite President Trump's tariffs. Overall exports rose 6% and imports rose nearly 5%. The goods deficit with China significantly dropped, but deficits with Taiwan, Vietnam, and Mexico increased. The U.S. saw a larger surplus in services trade, reaching $339 billion. These shifts occurred as companies adjusted to Trump's tariffs, importing goods ahead of tax implementations and diverting trade from China to other countries. The U.S. is currently negotiating a renewal of its trade pact with Canada and Mexico.

Key Entities & Roles

Key Player Opposition Context

Peterson Institute for International Economics 30% Chad Bown 30% Canada 40% Commerce Department 40% Mexico 50% Vietnam ×250% Taiwan ×360% China ×370% United States ×880% Donald Trump ×690%

Keywords

trade deficit 100% trump tariffs 90% international trade 80% goods trade 70% imports 60% exports 60% taiwan 50% china 50% artificial intelligence 40% protectionist policies 40%