US trade deficit hits $1.24 trillion in 2025 despite tariffs

Thursday 19 February 2026 - 17:45

By: Sahili Aya

US trade deficit hits $1.24 trillion in 2025 despite tariffs

The United States recorded a historic trade deficit of $1.241 trillion in 2025, marking a 2.1% increase compared with the previous year, according to data released by the US Department of Commerce. This record deficit occurred despite the implementation of tariffs aimed at rebalancing trade flows with key international partners.

In December, the deficit for goods and services accelerated to $70.3 billion, far surpassing market expectations of $56 billion. Analysts attribute this widening gap to a combination of rising imports and slower export growth. Imports of goods reached $3.438 trillion, while services imports totaled $895 billion, driven largely by investment goods, industrial metal parts, and travel-related services.

Exports grew at a slower pace, reaching $2.197 trillion in goods and $1.235 trillion in services, supported by the aerospace, energy, and pharmaceutical sectors.

Geographic distribution of the deficit

The largest trade deficits were observed with the China, European Union, and Mexico, with Taiwan and Vietnam also contributing to the increase in imports.

Within the European Union, the U.S. annual trade deficit reached $218.8 billion, concentrated mainly in transactions with Germany, France, Ireland, and Italy. In contrast, the U.S. maintains a trade surplus with the Benelux countries, primarily the Netherlands, and with the United Kingdom outside the EU.

Despite tariffs introduced under former President Donald Trump, intended to reduce deficits and rebalance trade, imports continued to rise faster than exports, reflecting persistent structural imbalances in U.S. trade.