US trade deficit widens sharply in December, testing Trump tariff claims
Trade with China remains a major driver of the US deficit, even as imports shift towards Southeast Asia and other partners
The US trade imbalance widened sharply in December 2025, highlighting continued challenges in America’s economic relationship with the world and with key economic competitor China, according to a release from the US Bureau of Economic Analysis on Thursday.
For the full year 2025, the US recorded a goods and services trade deficit of US$901.5 billion, a modest decline of 0.2 per cent from 2024, one of the largest since 1960. The total goods and services deficit in 2024 was US$903.5 billion, the report showed.
According to the new data, the US goods and services deficit rose to US$70.3 billion in December, a sharp increase of 32.6 per cent from November’s revised US$53.0 billion.
Exports fell slightly while imports increased, widening the gap as global demand shifted in the final months of the year.
Monthly exports in December were US$287.3 billion, down US$5.0 billion from November. Imports rose to US$357.6 billion, an increase of US$12.3 billion over the same period.
Although the overall US trade deficit with China has declined over the past year, China remains one of the largest sources of America’s bilateral goods trade deficit.