Thu, 19 Feb 2026

Thu, 19 Feb 2026 US trade deficit hits fresh high despite Trump's tariffs

The US bought more goods than it sold in 2025 as the White House attempts to reverse the flow.

* The US trade deficit reached a record high of $1.2 trillion (£890bn) last year, despite the introduction of tariffs by President Donald Trump.
* The gap between imports and exports widened by 2.1% compared to the previous year, with imports reaching a record $3.4tn.
* Exports hit a new high, but at a slower rate than imports, resulting in a larger trade deficit.
* The US trade deficit with China fell to its lowest level in two decades, but the country still recorded record trade gaps with several other countries, including Mexico, Vietnam, and Taiwan.
* Business investment in artificial intelligence drove demand for US imports of computer parts and equipment, which surged last year.
* The Trump administration's efforts to reduce the trade deficit are ongoing, but have been hampered by frequent revisions to tariffs and a Supreme Court challenge to the duties.
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