The U.S. trade deficit has narrowed to its smallest level since mid-2020, falling more than 35% compared with last year, underscoring the impact of President Donald J. Trump’s America First trade agenda.
U.S. exports are up 6% over last year, reaching their second-highest value on record, while inflation-adjusted exports of consumer goods hit an all-time high. The seasonally adjusted trade deficit with China has also fallen to its second-lowest level since 2009.
In the third quarter of 2025, real exports grew at a 4.1% annual rate, while imports dropped by approximately 5%, contributing roughly 1% to real GDP growth. November’s trade deficit was cut by more than half compared with the same month last year, driven in part by soaring tariff revenues.
“President Trump is delivering better terms for American workers, farmers, and manufacturers, leveling the playing field after decades of weak trade policies that allowed foreign countries to flood our markets while restricting access to theirs,” a White House spokesperson said.
Since announcing his trade agenda in April, President Trump has used tariffs to gain leverage in securing new and improved trade deals with major U.S. partners representing more than half of global GDP, including the United Kingdom, European Union, Japan, China, Republic of Korea, Indonesia, Malaysia, Thailand, Vietnam, Philippines, Cambodia, El Salvador, Ecuador, Argentina, Guatemala, Switzerland, and Liechtenstein.
The administration says these policies have spurred companies to onshore operations, create tens of thousands of American jobs, and invest trillions of dollars domestically, positioning the U.S. as a global leader in industries of the future.