Donald Trump claims the US trade deficit has fallen 78% due to tariffs and may turn positive this year. However, 2025 data show continued deficits despite lower Chinese imports. A Federal Reserve study finds that most tariff costs were borne by US businesses and consumers, not by foreign exporters.
US President Donald Trump on Wednesday (local time) said the country’s trade deficit has contracted sharply by 78% due to tariffs imposed on companies and countries, calling it a first in many decades.
In a post on Truth Social, he wrote, “The United States trade deficit has been reduced by 78% because of the tariffs being charged to other companies and countries. It will go into positive territory during this year, for the first time in many decades. Thank you for your attention to this matter!”
His remarks came ahead of the official trade data for December, which is due on Thursday (local time). Investing.com reported that the United States is expected to post a monthly trade surplus of about $55.5 billion, which, if confirmed, would mark the country’s first monthly trade surplus since 1975.
The United States is projected to record a trade deficit of more than $800 billion in 2025, lower than the record $1.2 trillion shortfall reported in 2024. Much of this year’s gap has been attributed to a sharp rise in imports during the first quarter, when businesses rushed to bring in goods ahead of Trump’s “Liberation Day” tariffs introduced in April.
US trade deficit in 2025
According to a report from the US Census Bureau, Washington’s trade deficit widened in November 2025 to $56.8 billion, up from $29.2 billion in October 2025. The country exported goods and services worth $292.1 billion in November, $10.9 billion less than in October, showing a drop in overseas sales. At the same time, imports rose to $348.9 billion, $16.8 billion more than the previous month.
The rise in November’s overall trade deficit was mainly driven by a sharp jump in the shortfall in goods, which grew by $27.9 billion to reach $86.9 billion. At the same time, the surplus in services edged up slightly by $0.3 billion to $30.1 billion.
For the year so far, the combined goods and services trade gap has expanded by $32.9 billion, marking a 4.1% increase compared with the same period in 2024. During this time, exports climbed by $185.7 billion, a 6.3% rise, while imports increased by $218.6 billion, up 5.8% from last year.
Donald Trump on trade tariffs
Trump’s remarks come nearly a year after his administration announced “Liberation Day” tariffs on more than 100 countries, in an attempt to “make America wealthy again”. On 2 April 2025, when Trump announced these “reciprocal tariffs”, he described the move as America’s “declaration of economic independence.” These tariffs ranged between 10% and 50%.
“It’s one of the most important days in American history. We are going to make America great again. Greater than ever before… we will supercharge our domestic industrial base… More production at home will mean more competition and lower prices for consumers,” he said back then.
After announcing tariffs on more than 100 countries, he announced a 90-day pause, allowing these countries to secure a deal with Washington to bring down the tariff rates substantially. The deadline, which ended in July, saw many countries securing a deal, which brought their tariffs to a considerably low level.
Although Trump later rolled back many of his highest tariffs, his punitive measures did lead to a noticeable decline in imports, especially from China. US goods imports from China fell to $288 billion between January and November 2025, compared with $401 billion during the same period in 2024. However, government data indicates that much of the reduction in Chinese imports was balanced out by higher purchases from other Asian and European nations.
US businesses and consumers paid 90% of tariff costs
American businesses and consumers paid nearly 90% of the cost of Trump’s tariffs last year, the Financial Times reported, citing data from a Federal Reserve research, which undercuts Trump’s claim that the burden would be on foreign companies.
The study by the Federal Reserve Bank of New York found that during the first 11 months of 2025, most of the costs from US tariffs were borne by American consumers and businesses rather than foreign exporters. However, the analysis noted that as the year went on, overseas suppliers began absorbing a larger share of those costs.
About the Author
Swati Gandhi
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on fo…Read More
Donald Trump claims the US trade deficit has fallen 78% due to tariffs and may turn positive this year. However, 2025 data show continued deficits despite lower Chinese imports. A Federal Reserve study finds that most tariff costs were borne by US businesses and consumers, not by foreign exporters.
US President Donald Trump on Wednesday (local time) said the country’s trade deficit has contracted sharply by 78% due to tariffs imposed on companies and countries, calling it a first in many decades.
In a post on Truth Social, he wrote, “The United States trade deficit has been reduced by 78% because of the tariffs being charged to other companies and countries. It will go into positive territory during this year, for the first time in many decades. Thank you for your attention to this matter!”
His remarks came ahead of the official trade data for December, which is due on Thursday (local time). Investing.com reported that the United States is expected to post a monthly trade surplus of about $55.5 billion, which, if confirmed, would mark the country’s first monthly trade surplus since 1975.
The United States is projected to record a trade deficit of more than $800 billion in 2025, lower than the record $1.2 trillion shortfall reported in 2024. Much of this year’s gap has been attributed to a sharp rise in imports during the first quarter, when businesses rushed to bring in goods ahead of Trump’s “Liberation Day” tariffs introduced in April.
US trade deficit in 2025
According to a report from the US Census Bureau, Washington’s trade deficit widened in November 2025 to $56.8 billion, up from $29.2 billion in October 2025. The country exported goods and services worth $292.1 billion in November, $10.9 billion less than in October, showing a drop in overseas sales. At the same time, imports rose to $348.9 billion, $16.8 billion more than the previous month.
The rise in November’s overall trade deficit was mainly driven by a sharp jump in the shortfall in goods, which grew by $27.9 billion to reach $86.9 billion. At the same time, the surplus in services edged up slightly by $0.3 billion to $30.1 billion.
For the year so far, the combined goods and services trade gap has expanded by $32.9 billion, marking a 4.1% increase compared with the same period in 2024. During this time, exports climbed by $185.7 billion, a 6.3% rise, while imports increased by $218.6 billion, up 5.8% from last year.
Donald Trump on trade tariffs
Trump’s remarks come nearly a year after his administration announced “Liberation Day” tariffs on more than 100 countries, in an attempt to “make America wealthy again”. On 2 April 2025, when Trump announced these “reciprocal tariffs”, he described the move as America’s “declaration of economic independence.” These tariffs ranged between 10% and 50%.
“It’s one of the most important days in American history. We are going to make America great again. Greater than ever before… we will supercharge our domestic industrial base… More production at home will mean more competition and lower prices for consumers,” he said back then.
After announcing tariffs on more than 100 countries, he announced a 90-day pause, allowing these countries to secure a deal with Washington to bring down the tariff rates substantially. The deadline, which ended in July, saw many countries securing a deal, which brought their tariffs to a considerably low level.
Although Trump later rolled back many of his highest tariffs, his punitive measures did lead to a noticeable decline in imports, especially from China. US goods imports from China fell to $288 billion between January and November 2025, compared with $401 billion during the same period in 2024. However, government data indicates that much of the reduction in Chinese imports was balanced out by higher purchases from other Asian and European nations.
US businesses and consumers paid 90% of tariff costs
American businesses and consumers paid nearly 90% of the cost of Trump’s tariffs last year, the Financial Times reported, citing data from a Federal Reserve research, which undercuts Trump’s claim that the burden would be on foreign companies.
The study by the Federal Reserve Bank of New York found that during the first 11 months of 2025, most of the costs from US tariffs were borne by American consumers and businesses rather than foreign exporters. However, the analysis noted that as the year went on, overseas suppliers began absorbing a larger share of those costs.
About the Author
Swati Gandhi
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on fo…Read More
