The U.S. trade deficit expanded in December, according to data from the Commerce Department. The figures capped a year marked by volatile tariff policies from President Donald Trump.

Read also: US Trade Deficit Widens 32.5% to $78.3 Billion in July

The monthly goods and services trade gap grew to $70.3 billion. For the entire year of 2025, the deficit reached $901.5 billion, remaining one of the largest since 1960.

The December increase was driven by a 3.6% rise in imports while exports declined by 1.7%. The monthly result was larger than the median estimate from a Bloomberg survey of economists.

Trade data showed significant month-to-month volatility throughout 2025. U.S. importers reacted to frequent tariff announcements from the current President of the United States. Imports of gold and pharmaceuticals were especially unstable as companies tried to avoid impending higher duties.

In December, increased imports of computer accessories and motor vehicles contributed to the wider gap. The drop in exports was largely due to fewer shipments of gold.

The data will help economists finalize estimates for fourth-quarter gross domestic product. Before the release, a Federal Reserve Bank of Atlanta forecast suggested net exports would contribute approximately 0.6 percentage point to growth, which was estimated at 3.6%.

After adjusting for price changes, the merchandise trade deficit widened to $97.1 billion in December, the largest since July. Trade in gold for non-industrial purposes is excluded from GDP calculations.

President Trump has used tariffs as part of a strategy to reduce reliance on foreign goods, boost domestic investment, and reverse declines in manufacturing jobs. The President and his economic team have disputed research indicating that Americans pay the costs of tariffs.

In 2025, U.S. companies imported nearly $145 billion more in computers and accessories than in 2024. This surge was linked to major investment in artificial intelligence.

By country, the annual trade deficit with Taiwan widened to a record $146.8 billion. The deficit with China narrowed sharply to about $202 billion, the smallest in over two decades, reflecting higher tariffs on Chinese imports. The deficit with Mexico reached a record, while the annual shortfall with Canada narrowed.

Source: IndexBox Market Intelligence Platform