U.S. Imports Up 4.8% Year-on-Year... Similar to 2024 Under Biden

Exports up 6.2% year-on-year
Smaller rise in imports narrows deficit
EU trade deficit surpasses China

Last year, U.S. imports increased by about 5% compared with the previous year. Despite the implementation of President Donald Trump’s tariff policies, the figure was not significantly different from that of 2024, during the Joe Biden administration.

The U.S. Department of Commerce announced on the 19th (local time) that the U.S. trade deficit in 2025 stood at 901.5 billion dollars, down 2.1 billion dollars (0.2%) from the previous year.

Exports totaled 3,432.3 billion dollars, an increase of 199.8 billion dollars (6.2%) from a year earlier, while imports came to 4,333.8 billion dollars, up 197.8 billion dollars (4.8%) year-on-year. Since imports grew by less than exports, the overall deficit narrowed.

Last year, the U.S. trade deficit went through roller-coaster-like ups and downs. Expecting the Trump administration to implement high-tariff policies, U.S. companies sharply increased goods imports through the first quarter of last year in order to build up inventories.

After that, the U.S. trade deficit shrank rapidly following President Trump’s announcement of reciprocal tariffs in April, then returned to its usual level in the second half of the year.

The goods deficit expanded despite the tariff policies. The goods deficit reached 1,240.9 billion dollars, an increase of 25.5 billion dollars (2.1%) from the previous year, while the services surplus widened to 339.5 billion dollars, up 27.6 billion dollars (8.9%) year-on-year.

The services surplus, which is not directly affected by tariffs, expanded significantly enough to offset the goods deficit, thereby contributing to the overall narrowing of the trade deficit.

By trading partner, the deficit in trade with the European Union (EU) reached 218.8 billion dollars. This is larger than the 202.1 billion dollar deficit with China. The trade deficit with China decreased by 93.4 billion dollars compared with 2024.

This was followed by Mexico (196.9 billion dollars), Vietnam (178.2 billion dollars), Taiwan (146.8 billion dollars), Ireland (114.2 billion dollars), Germany (73.0 billion dollars), Thailand (71.9 billion dollars), Japan (63.9 billion dollars), India (58.2 billion dollars), and Korea (56.4 billion dollars), in that order, in terms of deficit size. Among these, the deficits in trade with Vietnam and Taiwan surged by 54.7 billion dollars and 73.0 billion dollars, respectively, compared with 2024.

Meanwhile, the trade deficit in December last year was tallied at 70.3 billion dollars, a sharp increase of 17.3 billion dollars (32.6%) from the previous month. Exports fell to 287.3 billion dollars, down 5.0 billion dollars (-1.7%) from the previous month, while imports rose to 357.6 billion dollars, up 12.3 billion dollars (3.6%) month-on-month, which contributed to the wider deficit.