US Goods Trade Deficit Widens Sharply in December

The US goods trade deficit widened markedly to $98.5 billion in December 2025, up 19.0% from a revised $82.8 billion shortfall in November and well above market expectations of $86 billion. It marked the largest goods deficit since July. Imports rose 3.8% to $278.6 billion, driven by a 15.9% surge in industrial supplies. Purchases of capital goods increased 5.5%, while automotive vehicle imports climbed 3.9%. Meanwhile, exports fell 3.0% to $180.0 billion, weighed down primarily by a 12.3% drop in industrial supplies shipments. For 2025 as a whole, the US goods trade deficit widened to $1.23 trillion from $1.20 trillion in 2024.

The US trade deficit in goods narrowed by $17.3 billion from the previous month to $85.5 billion in August 2025, well below the market expectations of $95.65 billion, according to an advance estimate. Imports fell 7.0% month-on-month to $261.6 billion, driven by declines in industrial supplies (-18.9% to $49.4 billion), foods and beverages (-8.7% to $16.9 billion), consumer goods (-6.4% to $55.1 billion), and capital goods (-4.4% to $92.0 billion). In contrast, imports rose for other goods (6.9% to $13.7 billion) and automotive vehicles (1.7% to $34.5 billion). Meanwhile, exports fell 1.3% to $176.1 billion, weighed down by declines in industrial supplies (-1.4% to $59.3 billion), consumer goods (-6.8% to $21.2 billion), other goods (-2.1% to $8.5 billion), and automotive vehicles (-3.0% to $12.7 billion), partly offset by gains in capital goods (1.1% to $60.6 billion) and foods and beverages (0.3% to $13.8 billion).

The US trade deficit in goods widened by $18.7 billion from the previous month to $103.6 billion in July 2025, far above expectations of $89.5 billion, according to an advance estimate. This marked the largest gap in four months, nearing the record-high deficit of $162 billion in March, driven by inventory front-loading ahead of new US tariffs. Imports jumped 7.1% from a month earlier to $281.5 billion, led by industrial supplies (25.4% to $60.7 billion), capital goods (4.8% to $95.9 billion), foods and beverages (2.4% to $18.5 billion), consumer goods (2.1% to $95.9 billion), and other goods (11.5% to $13.5 billion). Meanwhile, exports slipped 0.1% to $178 billion, reflecting lower sales of industrial supplies (-0.8% to $59.9 billion), consumer goods (-0.9% to $22.8 billion), and other goods (-2.4% to $8.7 billion), partly offset by gains in automotive vehicles (2.2% to $13 billion), capital goods (0.7% to $59.8 billion), and foods and beverages (0.5% to $13.8 billion).