Trump Tariffs Work: Trade Deficit Plummets to Five-Year Low

The trade deficit has narrowed to its smallest since mid-2020, down more than 35% over last year — and more proof that President Donald J. Trump’s America First trade agenda is working.

Here’s what you need to know:

• U.S. exports are up 6% over last year — rising to their second-highest value on record — while Inflation-adjusted exports of consumer goods are the largest ever.
• The seasonally adjusted trade deficit with China has narrowed to its second-smallest since 2009.
• In the third quarter of 2025, real exports grew by a 4.1% annual rate and imports fell by around 5% — adding about 1% to real GDP growth.
• As President Trump delivers better terms for American workers, farmers, and manufacturers, November’s deficit was cut by more than half compared to the same month last year, fueled by soaring tariff revenues.

President Trump is delivering on his commitment to level the playing field after decades of weak trade policies allowed foreign countries to flood our markets with their goods while shutting their own markets to our producers.

• Since announcing his historic trade agenda in April, President Trump’s use of tariffs has given him unprecedented leverage to secure new and improved trade deals with major U.S. trading partners covering 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.
• As President Trump pursues his bold commitment to an America First trade agenda, scores of companies have announced trillions of dollars in new investment as they onshore workers from foreign countries and create tens of thousands of new American jobs — positioning the U.S. as the dominant player for the jobs of the future.