U.S. Trade Deficit Surges to $70.3 Billion in December as Imports Climb

A sharp rise in imports pushed the December trade gap up 32.6%, while the annual goods deficit reached a record high despite tariff policies.

By yourNEWS Media Newsroom

The U.S. trade deficit widened significantly in December as imports increased, according to data released Thursday by the Commerce Department’s Bureau of Economic Analysis and Census Bureau.

The monthly trade gap expanded 32.6% to $70.3 billion. Economists surveyed by Reuters had forecast the deficit would narrow to $55.5 billion.

For the full year, the overall trade deficit edged down 0.2% to $901.5 billion in 2025. However, the goods trade deficit widened 2.1% to a record $1.24 trillion, marking the highest annual goods shortfall on record.

President Donald Trump imposed a series of tariffs on foreign-manufactured products last year with the stated goal of reducing trade imbalances and strengthening U.S. industry. Despite those measures, factory employment declined by 83,000 jobs from January 2025 through January 2026.

The December trade report, delayed due to last year’s government shutdown, showed total imports rising 3.6% to $357.6 billion. Goods imports climbed 3.8% to $280.2 billion, driven by a $7.0 billion increase in industrial supplies and materials, primarily non-monetary gold, copper and crude oil.

Capital goods imports rose $5.6 billion, supported by gains in computer accessories and telecommunications equipment. Analysts noted the increase may be linked to the expansion of data center infrastructure to support artificial intelligence development.

Consumer goods imports declined, largely due to reduced pharmaceutical preparations, which have experienced notable month-to-month volatility. For the year, goods imports increased 4.3% to $3.44 trillion.

Exports declined 1.7% in December to $287.3 billion. Goods exports fell 2.9% to $180.8 billion, weighed down by an $8.7 billion decrease in industrial supplies and materials, primarily non-monetary gold. Other goods exports also declined.

Capital goods exports increased, boosted by semiconductor shipments. Exports of consumer goods, including pharmaceutical preparations, also rose. For 2025, total goods exports increased 5.7% to $2.20 trillion.

The goods trade deficit widened 18.8% in December to $99.3 billion. Services imports increased $2.0 billion to $77.4 billion, reflecting gains in transport and travel services. Services exports rose $0.5 billion to $106.5 billion.

The larger-than-expected December trade deficit may lead economists to revise down estimates for fourth-quarter economic growth. The Bureau of Economic Analysis is scheduled to release its delayed advance estimate of fourth-quarter gross domestic product on Friday.

According to a Reuters survey, the economy is projected to have grown at a 3.0% annualized rate in the fourth quarter, following a 4.4% expansion in the July-to-September period.