U.S. Trade Deficit Slipped to $901 Billion in 2025

Amid Trump-era tariffs, exports rose 6% while imports increased nearly 5%

Published on Feb. 25, 2026

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The U.S. trade deficit narrowed slightly in 2025 to just over $901 billion, down from $904 billion the previous year. This came as President Donald Trump imposed double-digit tariffs on imports from most countries, leading to a 6% rise in exports and a nearly 5% increase in imports as companies tried to get goods into the country ahead of the new taxes.

Why it matters

Trump's tariffs were a key part of his economic agenda, aimed at protecting U.S. industries and bringing manufacturing jobs back to America. While the tariffs did not have as much impact on inflation as expected, they significantly disrupted global trade flows and relationships.

The details

The U.S. trade deficit - the gap between what the country sells to other nations and what it buys from them - narrowed in 2025 compared to the prior year. Exports rose 6% while imports increased nearly 5% as companies tried to beat the new tariffs Trump had imposed on most foreign goods.

  • The trade gap surged from January-March 2025 as U.S. companies tried to import foreign goods ahead of Trump's new tariffs.
  • The trade deficit then narrowed for most of the rest of 2025.

The players

Donald Trump

The former U.S. president who implemented double-digit tariffs on imports from most countries as part of his economic agenda.

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The takeaway

Trump's tariffs significantly disrupted global trade, leading to a modest narrowing of the U.S. trade deficit in 2025. However, the tariffs did not have the intended impact of dramatically reducing the trade gap or bringing manufacturing jobs back to America as Trump had promised.