US trade deficit widens sharply in December; goods trade gap highest on record in 2025 [View all]

Source: Reuters

Reuters
US trade deficit widens sharply in December; goods trade gap highest on record in 2025

By Reuters
February 19, 2026 9:34 AM EST * Updated 31 mins ago

WASHINGTON, Feb 19 (Reuters) - The U.S. trade deficit widened sharply in December amid a surge in imports, and the goods shortfall in 2025 was the highest on record despite President Donald Trump's tariffs on foreign manufactured merchandise.

The trade gap ballooned 32.6% to $70.3 billion, the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Thursday. Economists polled by Reuters forecast the trade deficit would contract to $55.5 billion. The trade deficit narrowed 0.2% to $901.5 billion in 2025. The goods trade gap widened 2.1% to an all-time high of $1.24 trillion.

Trump last year unleashed a barrage of tariffs against trading partners with the aim, among other things, to address trade imbalances and protect U.S. industries. But the punitive duties have not yielded a manufacturing renaissance, with factory employment declining by 83,000 jobs from January 2025 through January 2026.

The report was delayed because of last year's government shutdown. Imports increased 3.6% to $357.6 billion in December. Goods imports surged 3.8% to $280.2 billion, boosted by a $7.0 billion increase in industrial supplies and materials, mostly non-monetary gold, copper and crude oil.

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Read more: https://www.reuters.com/business/us-trade-deficit-widens-sharply-december-goods-trade-gap-highest-record-2025-2026-02-19/