Yes, the
$901.5 billion U.S. trade deficit for 2025 (reported in February 2026) includes the impact of increased tariffs implemented throughout the year. Despite President Donald Trump's aggressive tariff policies—which included a 10% general duty on all imports and higher reciprocal rates for specific countries—the annual deficit narrowed by only 0.2% from $903.5 billion in 2024.
Key Observations from 2025 Data
- Import Front-Loading: The deficit surged in the first quarter of 2025 as businesses rushed to import goods before new tariffs took effect in April.
- Record Goods Deficit: While the overall deficit (goods and services) slightly declined, the trade deficit for physical goods alone actually hit a record high of $1.24 trillion in 2025.
- Trade Diversion: Tariffs successfully reduced the trade gap with China by nearly 32%, but imports shifted to other countries; deficits widened with Vietnam (up to $178 billion), Mexico ($197 billion), and Taiwan ($147 billion).
- Year-End Surge: The monthly deficit widened sharply to $70.3 billion in December 2025 as importers depleted old stockpiles and resumed purchasing.
