It has expanded to US$70.3 billion in December, culminating in US$901.5 billion for the full year
Published Fri, Feb 20, 2026 · 12:01 AM
[WASHINGTON] The US trade deficit widened in December, capping a turbulent year of erratic tariff policy.
The goods and services trade gap expanded from the prior month to US$70.3 billion, US Commerce Department data showed on Thursday (Feb 19).
The shortfall culminated in a full-year deficit of US$901.5 billion, still one of the largest as exhibited by data dating back to 1960.
The December deficit reflected a 3.6 per cent increase in the value of imports. Exports of goods and services declined 1.7 per cent.
Among economists surveyed by Bloomberg, the median trade deficit was US$55.5 billion.
Trade data was notably volatile in 2025 on a month-to-month basis, as US importers reacted to a persistent drumbeat of tariff announcements from US President Donald Trump.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Gold and pharmaceutical imports were particularly choppy, as companies raced to beat higher duties.
The increase in goods imports in December included gains in computer accessories and motor vehicles. The decline in exports largely reflected fewer outbound shipments of gold, the trade report said.
The latest data will help economists firm up their estimates for the fourth-quarter gross domestic product figure, which will be released on Friday.
Before the figures, the Federal Reserve Bank of Atlanta’s GDPNow forecast net exports would add about 0.6 percentage points to fourth-quarter growth, now estimated at 3.6 per cent.
After adjusting for changes in prices, which filters into the real GDP measurement, the merchandise trade deficit widened to US$97.1 billion in December, the most since July.
Trade in gold, unless used for industrial purposes such as in the production of jewellery, is excluded from the government’s GDP calculation.
Trump has leaned on tariffs as part of his strategy to reduce reliance on foreign goods, encourage domestic investment and correct decades of declines in manufacturing employment. He and his economic team have criticised research concluding that Americans have borne the costs of tariffs.
In 2025, US companies imported nearly US$145 billion worth of computers and accessories – more than they did in 2024.
The acceleration in demand reflected the massive investment underway in artificial intelligence.
The deficit with Taiwan in 2025 widened to a record US$146.8 billion.
The shortfall with China, meanwhile, narrowed sharply – reaching about US$202 billion, the lowest in more than 20 years and a reflection of the higher tariffs Trump put on Chinese imports.
The deficit with Mexico widened to a record, while the annual shortfall with Canada narrowed.
Separate data on Thursday showed US initial jobless claims fell last week by the most since November. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
