FX.co ★ US Trade Gap Higher Than Expected

The US trade deficit widened to $70.3 billion in December 2025 from $53 billion in November, exceeding market expectations of a $55.5 billion gap. Exports fell 1.7% to $287.3 billion, driven largely by a sharp decline in shipments of nonmonetary gold. In contrast, imports rose 3.6% to $357.6 billion, primarily reflecting higher purchases of computer accessories.

For the full year 2025, the US posted a trade deficit of $901.5 billion, slightly narrower than the $903.5 billion shortfall in 2024 but still among the largest annual gaps since 1960. Exports increased 6.2% to $3,432.3 billion, with nonmonetary gold registering the strongest growth, followed by finished metal shapes, charges for the use of intellectual property, and natural gas. Imports climbed 4.8% to $4,333.8 billion, led by higher inflows of computers.

Bilateral trade balances moved unevenly. The US trade deficit narrowed with the European Union (to $219 billion in 2025 from $236 billion in 2024) and with China (to $202 billion from $296 billion). However, it widened with Mexico (to $197 billion from $171 billion), Vietnam (to $178 billion from $123 billion), and Taiwan (to $147 billion from $74 billion).