US trade deficit swells in December as imports surge
Al Jazeera
February 19, 2026
AI-Generated Deep Dive Summary
The United States experienced a significant widening of its trade deficit in December 2025 as imports surged, particularly in tech-related goods like computer chips, despite President Trump’s tariffs aimed at reducing trade imbalances. The deficit reached a record $1.24 trillion last year, driven by increased demand for AI investments that boosted imports from countries like Taiwan and Vietnam. While exports rose slightly, the growth in imports outpaced exports, leading to a second consecutive monthly increase in the trade gap.
The surge in imports included industrial supplies such as non-monetary gold, copper, and crude oil, which climbed by $7 billion. Capital goods imports also jumped, with computer accessories and telecommunications equipment playing a major role. This aligns with growing investments in data centers to support advancements in artificial intelligence. However, consumer goods imports saw a decline, particularly in pharmaceutical preparations, due to fluctuating trade dynamics influenced by tariffs.
Despite Trump’s aggressive tariff policies, which were intended to protect US industries and address trade imbalances, the trade deficit continued to grow. The deficit with China plummeted nearly 32 percent, but this was offset by increased trade gaps with Taiwan and Vietnam, where
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Originally published on Al Jazeera on 2/19/2026