Economy|Trade WarUS trade deficit swells in December as imports surgeThe second straight monthly deterioration in the United States’ trade deficit occurred as US firms boosted imports of computer chips and other tech goods.
The United States experienced a significant expansion in its trade deficit during December, primarily driven by a notable increase in imports. In 2025, the deficit in goods trade reached a record high of $1.24 trillion, despite the imposition of tariffs…
The United States experienced a significant expansion in its trade deficit during December, primarily driven by a notable increase in imports. In 2025, the deficit in goods trade reached a record high of $1.24 trillion, despite the imposition of tariffs on foreign-manufactured products. This information was reported by the US Commerce Department.
The persistent rise in the trade deficit suggests minimal contribution to the gross domestic product (GDP) in the fourth quarter. Exports increased by 6 percent over the previous year, while imports rose by nearly 5 percent.
The US trade deficit with China decreased by nearly 32 percent to $202 billion in 2025, attributed to a decline in both exports to and imports from China. The trade gap with Taiwan doubled to $147 billion, and the deficit with Vietnam increased by 44 percent to $178 billion.
These shifts indicate a diversion of trade away from China, with increased imports of computer chips and other technology goods from Taiwan, supporting investments in artificial intelligence.
The United States experienced a significant expansion in its trade deficit during December, primarily driven by a notable increase in imports.
In a move to address trade imbalances, tariffs were imposed on several trading partners. However, manufacturing employment declined by 83,000 jobs from January 2025 through January 2026, suggesting limited efficacy of these tariffs in spurring a manufacturing resurgence.
The trade deficit surged by 32.6 percent to $70.3 billion, based on data from the Commerce Department’s Bureau of Economic Analysis and the US Census Bureau. This was contrary to economist predictions of a contraction to $55.5 billion.
December saw a 3.6 percent increase in imports, totaling $357.6 billion. Goods imports rose by 3.8 percent to $280.2 billion, driven by increases in industrial supplies such as non-monetary gold, copper, and crude oil. Capital goods imports also increased, influenced by the demand for computer accessories and telecommunications equipment, likely for data center construction related to AI.
Conversely, consumer goods imports declined, affected by fluctuations in pharmaceutical preparations due to tariffs. Despite a 1.7 percent decrease in overall exports to $287.3 billion in December, capital goods exports saw an increase, particularly in semiconductors, along with a rise in consumer goods exports, including pharmaceuticals.
Based on reporting by Al Jazeera.