Bloomberg: US trade deficit hits $901.5 billion in 2025 amid tariff volatility

The United States recorded a widening trade deficit in December, closing out a turbulent year marked by erratic tariff policy. According to Commerce Department data released on February 19, the goods and services trade gap expanded to $70.3 billion, pushing the full-year shortfall to $901.5 billion—one of the largest on record since 1960.

The December deficit reflected a 3.6% rise in imports, led by computer accessories and motor vehicles, while exports fell 1.7%, driven largely by reduced gold shipments. Analysts surveyed by Bloomberg had forecast a smaller deficit of $55.5 billion.

Trade flows in 2025 were notably volatile as US businesses scrambled to adjust to a constant stream of tariff announcements from President Donald Trump. Gold and pharmaceutical imports were particularly erratic as companies sought to beat rising duties.

The data will help economists finalise fourth-quarter GDP estimates, with the Federal Reserve Bank of Atlanta projecting that net exports could contribute roughly 0.6 percentage points to growth, which is currently estimated at 3.6%.

When adjusted for price changes, the merchandise trade deficit widened to $97.1 billion in December, the largest since July. Notably, gold trade—unless used industrially—does not factor into the official GDP calculation.

President Donald Trump has defended his tariff strategy as a means to reduce reliance on foreign goods, boost domestic investment, and revive manufacturing employment, despite criticism from research indicating that American consumers have shouldered the costs.

By Sabina Mammadli