US Trade Deficit Hits Record Despite Tariffs, China Imports Drop

US goods trade deficit reached $1.24 trillion in 2025, its highest since 1960, despite President Trump's tariffs. The deficit with China narrowed 30% as imports fell, but overall imports rose 32.6% in December. Experts attribute this to AI-driven tech imports and companies front-running tariffs before they took effect. The trade gap barely changed year-over-year ($901.5B), with experts predicting stabilization after peak tariff impacts. Trump credits tariffs for economic success, but a Fed study shows 90% of tariff costs fell on US consumers and businesses.

SOURCE: https://www.channelstv.com/2026/02/19/us-trade-deficit-in-goods-widens-to-new-record-in-2025/