The U.S. trade deficit widened to $70.3 billion in December, capping a volatile year shaped by shifting tariff policy and surging import demand, Bloomberg writes.
The full-year gap reached $901.5 billion—one of the largest annual deficits since 1960—after imports rose 3.6% in December and exports fell 1.7%. Economists had expected a smaller shortfall.
Much of the import growth reflected stronger shipments of computer accessories and motor vehicles, while gold exports declined. Trade flows were notably choppy throughout 2025 as companies rushed to navigate tariff announcements, particularly on gold and pharmaceuticals.
Despite efforts to reduce reliance on foreign goods, deficits widened with countries such as Mexico, Vietnam and Taiwan, even as the gap with China narrowed sharply. The data will factor into fourth-quarter GDP estimates, with net exports expected to provide only limited support to growth.
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