In 2025, Trade Deficit in Goods Reached Record High

NYT Homepage

by Ben Casselman, Ana Swanson and Keith Collins

February 19, 2026

AI-Generated Deep Dive Summary

Data released Thursday by the Census Bureau revealed that while the overall U.S. trade deficit with the world narrowed in 2025, the trade deficit in goods reached a record high. This occurred despite President Trump's promises that his tariffs would reduce imports and shrink the trade gap. Instead, U.S. imports grew last year, and the goods trade deficit hit an all-time high, signaling that Trump's policies have not delivered their intended results. The narrowing of the overall trade deficit was attributed to a growing surplus in services, which offset the record-breaking deficit in physical goods. This shift reflects how companies have adapted to tariffs by rerouting orders and altering supply chains rather than bringing production back to the U.S. American manufacturers have also faced challenges, with more than 80,000 jobs lost in the sector over the past year. High tariffs introduced under Trump's policies led to significant disruptions in trade dynamics. Companies stockpiled goods before tariffs took effect, only to halt imports afterward. Additionally, U.S. investors turned to foreign gold as a hedge against market volatility, further complicating the trade picture. While tariffs did reduce some imports of cars and consumer goods, they failed to curb demand for other products, such as chips for artificial intelligence data centers and foreign weight-loss drugs, which continued to buoy cross-border trade. The U.S. imported $4.3 trillion worth of goods and services in 2025, a 4.7% increase from the previous year, while exports rose by 6.2%, reaching $3.4 trillion.

Verticals

newsgeneral

Originally published on NYT Homepage on 2/19/2026