US trade deficit swells in December as imports surge
Al Jazeera
The second straight monthly deterioration in the United States’ trade deficit occurred as US firms boosted imports of computer chips and other tech goods.
The United States trade deficit has widened sharply in December amid a surge in imports, and the goods shortfall in 2025 was the highest on record despite US President Donald Trump’s tariffs on foreign-manufactured merchandise.
The second straight monthly deterioration in the trade deficit reported by the US Commerce Department on Thursday suggested that trade made little or no contribution to gross domestic product (GDP) in the fourth quarter.
Exports rose 6 percent last year, and imports rose nearly 5 percent.
The US deficit in the trade of goods widened 2 percent to a record $1.24 trillion last year as American companies boosted imports of computer chips and other tech goods from Taiwan to support massive investments in artificial intelligence.
Amid continuing tensions with Beijing, the deficit in the goods trade with China plunged nearly 32 percent to $202bn in 2025 on a sharp drop in both exports to and imports from the world’s second-biggest economy. But trade was diverted away from China. The goods gap with Taiwan doubled to $147bn and shot up 44 percent, to $178bn, with Vietnam.
