US trade deficit swells in December as imports surge

Al JazeeraEN 2 min read 100% complete by By AP and ReutersFebruary 19, 2026 at 10:00 PM

US trade deficit swells in December as imports surge

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In December 2025, the US trade deficit widened for the second consecutive month due to a surge in imports, particularly computer chips and tech goods. The overall goods deficit for 2025 reached a record $1.24 trillion, despite tariffs imposed by then-President Trump. While exports rose 6% and imports nearly 5% throughout the year, the increased imports from Taiwan and Vietnam offset a nearly 32% drop in the goods trade deficit with China. This shift occurred as American companies invested heavily in artificial intelligence. Experts suggest that tariffs have not significantly impacted trade deficits historically.

Key Entities & Roles

Key Player Opposition Context

Peterson Institute for International Economics 40% Chad Bown 40% Beijing 50% US Commerce Department 50% Vietnam 50% Taiwan ×260% China ×270% Donald Trump ×270% United States ×590%

Keywords

trade deficit 100% imports 80% exports 70% tariffs 70% computer chips 60% trade imbalances 60% gdp 50% artificial intelligence 50% us economy 40%

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Negative

Score: -0.30

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Al Jazeera

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90%

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United States

This article was automatically classified using rule-based analysis.

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trade deficit imports exports tariffs computer chips trade imbalances gdp artificial intelligence us economy

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