The US trade deficit in goods reached a record level of $1.24 trillion in 2025, representing a 2.1 percent increase compared to the previous year. Data from the US Department of Commerce indicates the ineffectiveness of the broad tariffs introduced by the Donald Trump administration in reducing the negative balance. Meanwhile, China overtook the United States, once again becoming Germany's largest trading partner, and the USA concluded a new trade agreement with Indonesia.

Record trade deficit

The goods trade deficit of the USA reached a historic $1.24 trillion, undermining the effectiveness of the America First strategy in limiting imports.

China returns to the top in Germany

The trade volume of Germany with China increased by 2.1%, pushing the United States into second place in the ranking of most important partners.

Trade agreement with Indonesia

President Prabowo Subianto and Donald Trump signed an agreement lowering tariffs to 19% in exchange for billion-dollar purchases of American goods.

The latest data from the US Department of Commerce challenges the economic narrative of the White House. Despite the introduction of high import tariffs, the trade deficit in goods increased to $1.24 trillion. Experts, including analysts from the Kiel Institute for World Economy, point out that the costs of this policy are borne mainly by American importers and consumers, not foreign exporters. The December deficit rose by 32.6 percent month-on-month, reaching $70.3 billion, nearly double market forecasts. The US trade deficit has persisted continuously since the 1970s, when the USA transformed from a net production economy into one based on consumption and services.In the shadow of global trade disputes, China regained its leading position in trade with Germany, overtaking the United States. The volume of trade between Berlin and Beijing amounted to 251.8 billion euros. Meanwhile, President Donald Trump and Indonesian leader Prabowo Subianto finalized a trade agreement. Under its terms, Indonesia will eliminate tariffs on almost all products from the USA and purchase energy resources and agricultural products worth $33 billion, in exchange for lowering US tariffs on Indonesian goods from 32 to 19 percent. „Tariffs are a suicide gate. The data shows that the claim that third countries pay these tariffs is a myth.” — Julian Hinz1.24 bln USD — was the annual US goods trade deficitGermany: China: 251.8, USA: 240.5This situation complicates the protectionist political plans of the current administration. Although the deficit with China fell to its lowest level in 21 years ($202 billion), the negative balance with Mexico and Vietnam rose to record levels. This suggests a mechanism of so-called indirect dumping or simply the relocation of supply chains to other Asian countries. Changes in US-Indonesia Trade: Tariff on goods from Indonesia: 32% → 19%; Tariffs on US exports: various rates → close to 0%; Purchase of energy and machinery: standard → +$33 billion

Mentioned People

  • Donald Trump — President of the United States pushing an aggressive tariff policy and concluding new trade agreements.
  • Prabowo Subianto — President of Indonesia, who finalized an agreement with the USA regarding tariffs and energy purchases.
  • Julian Hinz — Research Director at the Kiel Institute for the World Economy, criticizing the effectiveness of tariffs.