The trade deficit of the United States expanded significantly in December, with the deficit in goods and services increasing to $70.3 billion, according to the latest data from the Department of Commerce. This surge resulted in an annual deficit of $901.5 billion, marking one of the largest deficits recorded since 1960. Analysts attribute the ongoing trade imbalance to the inconsistent tariff policies implemented by former President Donald Trump throughout the year.

Oren Klachkin, an economist from Nationwide Financial Market, pointed out that despite extensive media coverage of tariffs and fluctuating trade data, the trade deficit has remained largely unchanged since 2025. He further noted that with the peak of the tariff burdens likely behind us, it is anticipated that trade will stabilize at a more predictable pace moving forward. This suggests that the mixed results of Trump's tariffs have not led to the intended reduction in the trade deficit as was hoped by some proponents of the policy.

The trade data has been particularly volatile month-to-month throughout 2025, as U.S. importers reacted to a series of tariff announcements made by Trump. This situation has been further complicated by the fluctuating imports of gold and pharmaceuticals, reflecting the ongoing uncertainty in trade relations and the effects of tariff strategies. As the dust settles on the past policies, economists are urging a more stable approach to trade that can minimize these erratic swings in the deficit figures.