US Trade Deficit Near Record High Despite Trump’s Tariffs

Published: 20 February 2026, The English Chronicle Desk, The English Chronicle Online

The United States has posted another staggering trade deficit figure, underscoring the limits of President Donald Trump’s tariff strategy to curb the nation’s imbalances in global commerce. Despite the administration’s aggressive levies on imported goods, new data show that the deficit remains near historic highs — particularly in the goods trade — raising questions about the effectiveness of tariffs in reshaping economic flows.

In 2025 the overall U.S. trade deficit — the gap between what the country buys from abroad versus what it sells — stood at approximately $901.5 billion, a figure barely changed from the previous year and among the largest on record. Within that total, the deficit in goods alone reached a record $1.24 trillion, driven in part by strong American demand for technology components and capital equipment.

Tariffs introduced by the Trump administration — including double‑digit duties on imports from many countries — were intended to reduce dependence on foreign producers and boost domestic manufacturing. While the deficit with China did fall significantly, trade deficits widened with other key partners such as Taiwan and Vietnam as supply chains shifted in response to tariff pressures.

The latest monthly data underscore these dynamics: in December 2025, the trade gap widened sharply to $70.3 billion, driven by a rise in imports and a drop in exports. Analysts say part of this pattern reflects investment‑led purchases of foreign‑made computer and telecommunications equipment tied to artificial intelligence projects in the United States.

Economists note that while tariffs may alter the composition of trade, they do not automatically shrink the overall deficit. Consumers and businesses often still purchase imported goods, and tariffs are frequently passed on in the form of higher prices, which can temper their intended protective effect.

The enduring trade gap highlights broader debates over economic policy, global supply chains and the role of protectionist measures in a highly interconnected economy. As Washington weighs future moves, including possible legal challenges to tariff authority and further negotiations with trading partners, businesses and lawmakers alike will closely watch how trade balances evolve.

The English Chronicle will continue to provide updates as more economic data are released and policymakers respond to these persistent trade challenges.

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