Overview
- Official figures show the December trade deficit widened 32.6% to $70.3 billion, missing forecasts for a narrower gap.
- The 2025 goods shortfall hit an all‑time high of $1.24 trillion, while the overall goods‑and‑services deficit edged down 0.2% to $901.5 billion.
- December imports rose to $357.6 billion as exports fell to $287.3 billion, with swings driven by industrial supplies like nonmonetary gold, copper and crude oil and by higher capital‑goods purchases tied to data‑center buildouts.
- Tariffs reshaped trade flows as the bilateral goods gap with China shrank sharply while deficits grew with partners such as Taiwan, Vietnam, Mexico and the European Union.
- A New York Fed analysis reported that nearly 90% of tariff costs were borne by U.S. businesses and consumers, and legal questions over the administration’s tariff authority remain before the Supreme Court.