US President Donald Trump said on Wednesday (local time) that the country’s trade deficit had plummeted by 78% due to tariffs on companies and countries, in what he called the first in decades.
In a post on Truth Social, he wrote: “The US trade deficit has been reduced by 78% due to tariffs on other companies and countries. It will turn positive this year for the first time in decades. Thank you for your attention to this matter!”
His remarks came ahead of official trade data for December due on Thursday (local time). Investing.com said 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.
Read also | Trump announced the India-US trade deal after speaking to Prime Minister Modi
The United States is expected to run a trade deficit of more than $800 billion in 2025, down from the record deficit of $1.2 trillion reported in 2024. Much of this year’s deficit was attributed to a surge in imports during the first quarter as businesses rushed to import goods ahead of Trump’s “Liberation Day” tariffs imposed in April.
Read also | US trade deficit widens from lowest since 2009 as imports rise
US trade deficit in 2025
According to a report by the US Census Bureau, Washington’s trade deficit widened to $56.8 billion in November 2025 from $29.2 billion in October 2025. The country exported $292.1 billion worth of goods and services in November, down $10.9 billion from October, showing a decline in overseas sales. At the same time, imports rose to $348.9 billion, which is $16.8 billion more than in the previous month.
The increase in the overall November trade deficit was mainly due to a sharp jump in the goods deficit, which increased by $27.9 billion to $86.9 billion. At the same time, the surplus in services increased slightly by USD 0.3 billion to USD 30.1 billion.
Year-to-date, the combined goods and services trade deficit has increased by $32.9 billion, up 4.1% compared to the same period in 2024. During this period, exports rose by $185.7 billion, up 6.3%, while imports rose 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 “Freedom Day” from tariffs on more than 100 countries in an effort to “make America rich again.” On April 2, 2025, when Trump announced these “reciprocal tariffs,” he called the move America’s “declaration of economic independence.” These rates varied between 10% and 50%.
Read also | Trump administration to impose tariffs on steel and aluminum? what changes?
“It’s one of the most important days in American history. We’re going to make America great again. Bigger than ever … we’re going to overflow our domestic industrial base … More manufacturing at home will mean more competition and lower prices for consumers,” he said at the time.
After announcing tariffs on more than 100 countries, he announced a 90-day pause to allow those countries to secure a deal with Washington to substantially reduce tariffs. The deadline, which ended in July, brought many countries to an agreement that brought their tariffs down to significantly low levels.
Although Trump later rescinded many of his highest tariffs, his punitive measures led to a noticeable drop in imports, especially from China. US goods imports from China fell to $288 billion between January and November 2025, compared to $401 billion for the same period in 2024. But government data indicated that much of the decline in Chinese imports was offset by higher purchases from other Asian and European countries.
American businesses and consumers paid 90% of the tariff costs
American businesses and consumers paid nearly 90% of the cost of Trump’s tariffs last year, the Financial Times reported, citing Federal Reserve research data that undermines Trump’s claim that the burden will fall on foreign companies.
A study by the Federal Reserve Bank of New York found that during the first 11 months of 2025, most of the costs associated with US tariffs were borne by US consumers and businesses rather than foreign exporters. However, the analysis noted that over the course of the year, overseas suppliers began to absorb a larger portion of these costs.