The US trade deficit increased in December, concluding a year marked by inconsistent tariff policies. According to Commerce Department data, the goods and services trade gap grew to $US70.3 billion ($99.6 billion) from the previous month. This brought the total deficit for the year to $US901.5 billion, ranking among the highest since 1960.
Despite numerous tariff-related announcements, the trade deficit remained relatively stable throughout 2025. Oren Klachkin, a market economist at Nationwide Financial, noted that the trade deficit “barely budged” in 2025. Klachkin anticipates that trade will stabilize into a more consistent pattern as the impact of peak tariffs diminishes.
Throughout 2025, trade data experienced considerable month-to-month volatility as US importers responded to a series of tariff announcements. Fluctuations in gold and pharmaceutical imports were especially pronounced, as companies accelerated shipments to avoid increased duties.
The December deficit, exceeding almost all estimates from a Bloomberg survey of economists, was influenced by a 3.6 per cent rise in the value of imports, driven by gains in computer accessories and motor vehicles. Conversely, exports of goods and services decreased by 1.7 per cent, primarily due to reduced gold shipments.
