United States 2025 Trade Deficit Report

In 2025, the United States' overall trade deficit slightly decreased to $901 billion from $904 billion in 2024, marking the third-highest on record. However, the goods trade deficit widened by 2% to a record $1.24 trillion. This was largely influenced by President Donald Trump's protectionist policies, including double-digit tariffs on imports. United States companies significantly boosted imports of computer chips and other tech goods from Taiwan to support massive investments in artificial intelligence, causing the goods gap with Taiwan to double to $147 billion. Amid ongoing tensions with China, the goods trade deficit with China plunged by nearly 32% to $202 billion, as trade was diverted. Consequently, the goods gap with Vietnam also surged by 44% to $178 billion. Economist Chad Bown suggested that Taiwan and Vietnam might become targets for future tariffs if Donald Trump prioritizes trade imbalances over rivalry with China. The United States is also negotiating a renewal of a trade pact with Mexico and Canada, where the goods deficit with Mexico widened and with Canada shrank.