Posted on 02/20/2026 6:17:39 AM PST by SoConPubbie
The U.S. trade deficit has fallen by nearly half since President Trump’s Liberation Day tariff announcements in March, with the December gap coming in 48 percent smaller than the March peak.
The combined goods and services deficit dropped to $70.3 billion in December from $136.0 billion in March, a decline of $65.7 billion, according to Commerce Department data released Thursday. The goods deficit alone fell 39 percent, from $162.1 billion to $99.3 billion.
The dramatic nine-month improvement suggests Trump’s tariff strategy is achieving its core objective of reducing America’s trade imbalance. March represented the peak of the deficit as importers rushed to bring in goods ahead of announced tariff increases, creating what economists call “front-loading.” The subsequent decline reflects both reduced import volumes and increased export competitiveness.
The December figure, while higher than the October low of $58.5 billion, was driven by volatile gold flows and a surge in computer accessory imports related to artificial intelligence infrastructure investment. Excluding these temporary factors, the underlying trend continues to show significant improvement from the pre-tariff period.
The China deficit, which peaked at $295.5 billion in 2024, fell to $202.1 billion in 2025—the smallest in more than two decades—as Trump’s tariffs redirected trade flows and reduced Chinese import dependence.
(Excerpt) Read more at breitbart.com ...
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Where’s, OUR, tariff money?
Oof... talk about cherry picking numbers! The March trade deficit was the largest in US history, precisely BECAUSE of the announced tariffs. To use that as a comparison point is simply dishonest.
The trade deficit has returned to near its historic norm (but is still higher than it was pre-pandemic).
Also, in one of the two Breitbart articles it says that there's a shift away from imports from China. Other countries are getting some of our business (increase in imports from those countries).
The fact that our dem/RINO/uniparty Congress piles on some $6,000,000,000 a DAY on the national debt you’ll never see a dime of tariff money. Hopefully SCOTUS will have a good ruling on tariffs, if not you’re looking at The Great Collapse sooner rather than later.
SCOTUS just said F.U. taxpayers.
I’m trying to digest numerous major articles that seem to be in conflict.
SCOTUS scuttled Trump’s broad tariffs; Trade deficit lowest in 33 years; GDP doubled; unemployment down.
Where are we headed now if congress refuses to allow the tariffs? Increased trade deficit, decreased GDP, higher unemployment?
The hate America deMS-13s must be pleased.
EC
“SCOTUS scuttled Trump’s broad tariffs”
Just got that terrible news...that means Congress runs the show as they will continue to destroy America. AKA known as the Uniparty that put the country in the mess in the first place decades ago and gets worse by the day. Glad I’ll be dead in about 10 years.
Looks like The Great Collapse might happen in our lifetime after all.
Don't hold your hand over your ass waiting for it after the Court's decision today. That trade deficit will now be going back up again unless President Trump has a Plan B.
“Where’s, OUR, tariff money?”
Don’t hold your hand over your ass waiting for it after the Court’s decision today. That trade deficit will now be going back up again unless President Trump has a Plan B.
-___________________________________________________________
Get real. There’s no plan B.
Try listening to his comments today. He specifically cited "methods, practices, statutes, authorities recognized by the Supreme Court and Congress that are even stronger than the IEPPA tariffs, and are available to me as President." He said there are other alternatives that we can use, and also mentioned previous laws that are still in effect that he can use to counter what the court did today. Additionally this Administration will be conducting investigations to make sure that this country is not the victim of unfair trade abuses.
U.S. trade deficit down 0.21% for the year 2025 (down $2.1 Billion from $903.5 Billion to $901.5 Billion):
https://www.bea.gov/news/2026/us-international-trade-goods-and-services-december-and-annual-2025
https://ycharts.com/indicators/us_trade_deficit_monthly
This matches my research as well. From Grok:
While there was a temporary monthly reduction in mid-to-late 2025 (often highlighted by the administration as evidence of tariff success), the overall annual deficit has not been meaningfully reduced since Liberation Day. Instead, it remained near historic highs for the year, with volatility driven by tariff anticipation, import shifts to other countries, and recent surges.
[Thread article] The combined goods and services deficit dropped to $70.3 billion in December....Oof... talk about cherry picking numbers! The March trade deficit was the largest in US history, precisely BECAUSE of the announced tariffs. To use that as a comparison point is simply dishonest.
Year over year, deficit spending went from $20.9B in December 2024 to $70.3B in December 2025, up $49.4B.
https://www.bea.gov/news/2026/us-international-trade-goods-and-services-december-and-annual-2025
U.S. Bureau of Economic Analysis
EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, Thursday February 19, 2026BEA 26—09
CB 26—31U.S. International Trade in Goods and Services, December and Annual 2025
Exhibit 15 was updated on February 19, 2026, at 3:30 p.m. EST to correct statistics for “Total Balance of Payments Basis” and “Net Adjustments” for November, December, and Annual 2025.
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $70.3 billion in December, up $17.3 billion from $53.0 billion in November, revised.
[...]
Annual Summary for 2025
Exports, Imports, and Balance (exhibit 1)
For 2025, the goods and services deficit was $901.5 billion, down $2.1 billion from $903.5 billion in 2024. Exports were $3,432.3 billion, up $199.8 billion from 2024. Imports were $4,333.8 billion, up $197.8 billion from 2024.
[...]
The 2025 decrease in the goods and services deficit reflected an increase in the goods deficit of $25.5 billion, or 2.1 percent, to $1,240.9 billion and an increase in the services surplus of $27.6 billion, or 8.9 percent, to $339.5 billion.
The undisputed all time leader in adding dollars to the federal debt is now President Donald J. Trump, being the first president to add over $10T to the federal debt. Barack Obama added $9.32T in eight years. Joe Biden added $8.4T in four years.
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