US trade deficit widens, Spring Gala performances, Merz visit

In December 2025, the US trade deficit significantly widened, increasing 32.6% from November to US$70.3 billion, according to the US Commerce Department. This contributed to a total annual deficit of US$901.5 billion, a slight decrease of 0.2% from the previous year. Despite widespread tariffs, the annual goods trade deficit reached a record US$1.24 trillion, a 2.1% increase year-on-year. Notably, the goods trade deficit with China fell to a 21-year low during this period. These figures reflect the difference between US exports and imports of goods and services.

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.

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.