The US Department of Commerce has published data showing that the goods trade deficit reached a record level of $1.24 trillion in 2025. Despite the aggressive tariff policy implemented by the Donald Trump administration, the December deficit increased by over 32 percent. Simultaneously, significant shifts occurred in the structure of trading partners: China lost its leading position in trade with Germany and the US, ceding its place to Germany and Taiwan, respectively.
Record goods deficit
The US goods trade deficit rose in 2025 to $1.24 trillion USD, despite the imposition of high tariffs on imports.
Shifts among partners
Mexico surpassed Canada as the main export market for the US, and Taiwan became a key technology supplier, distancing China.
Controversy over glyphosate
President Donald Trump granted herbicides the status of essential for defense, sparking a rebellion among supporters of healthy food.
Germany bets on China
China once again became the most important trading partner for Germany, with trade volume at 251.8 billion euros.
Despite intensive efforts by the Donald Trump administration aimed at protecting the domestic market, the United States trade balance shows a deepening imbalance. According to the latest data from the Department of Commerce, the goods trade deficit rose in 2025 to a record amount of $1.24 trillion, representing an increase of 2.1% compared to the previous year. December brought a particularly drastic reading, when the negative trade balance jumped to $70.3 billion from $53 billion in November. Goods imports to the US rose by 3.6%, while exports fell by 1.7%, suggesting that tariffs failed to stem the inflow of foreign products. Mercantilist policy, based on striving for an export surplus over imports, dominated in Europe between the 16th and 18th centuries, becoming the foundation for building colonial powers. The data also reveal tectonic changes in global supply chains. China ceased to be the main exporter of goods to the US, with its place in December taken by Taiwan, an effect of the boom in artificial intelligence-related technologies. Meanwhile, in Europe, the Middle Kingdom returned to the position of the most important trading partner for Germany, overtaking the US, with which trade fell by 5%. In North America, Mexico became the largest export market for US goods, surpassing Canada. Concurrently, President Trump signed an executive order granting strategic status to the production of glyphosate, which sparked fury in the MAHA (Make America Healthy Again) coalition. US Trade Deficit with Partners in 2025: China: 202, Mexico: 160, Taiwan: 85 The economic effects of the trade war are also affecting American companies. The Deere corporation estimates its tariff expenses at $1.2 billion, half of which depends on an upcoming Supreme Court ruling regarding the president's authority to unilaterally impose trade levies. Although the trade deficit with China alone fell to its lowest level in 21 years, this gap was filled by imports from other directions, undermining the overall effectiveness of the White House's strategy in reducing the global trade debt. 1.24 trillion — dollars was the US goods deficit in 2025 „Women feel betrayed by decisions regarding pesticides.” — Robert F. Kennedy Jr. Highlights the ineffectiveness of tariffs in reducing the deficit and the negative effects for consumers and the environment through support for glyphosate. | Emphasizes trade independence from China and the protection of American agriculture as a defense sector.
Mentioned People
- Donald Trump — US President pushing tariff policy and protecting herbicide producers.
- Robert F. Kennedy Jr. — US Secretary of Health, whose supporters feel betrayed by the president's decisions regarding pesticides.