The U.S. trade deficit in goods expanded to a new record in 2025, government data showed Thursday, despite sweeping tariffs that President Donald Trump imposed during his first year back in the White House.

The U.S. goods deficit stood at $1.24 trillion for all of last year, widening slightly from 2024's level, the Commerce Department said.

But the trade gap in goods with China narrowed for the full year, data showed.

When both goods and services were considered, the overall U.S. trade deficit for 2025 narrowed to $901.5 billion, from $903.5 billion in 2024.

In the month of December, the overall deficit grew more than expected by 32.6% to $70.3 billion, as exports fell and imports climbed.

Exports of industrial supplies including nonmonetary gold dropped, while imports in the same category rose for the month.

U.S. imports of capital goods like computer accessories and telecommunications equipment picked up in the month.

Trade flows involving the world's biggest economy were heavily swayed in 2025 as Trump slapped fresh tariffs on goods from virtually all trading partners after returning to the presidency, as part of his push to reduce the trade deficit.

His moves brought the average effective tariff rate to its highest since the 1930s.

The narrowing of deficit with China also came after Trump engaged in tit-for-tat tariff escalations with Beijing last year, although both countries have since cooled tensions.

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