The US trade deficit closed out 2025 at $901.5 billion, among the largest on record since records began in 1960.
For all the tariff turbulence of the past year, economists say that the trade deficit number “barely budged.” That’s because tariffs reshaped where we trade, not how much.
The deficit with China shrank to roughly $202 billion, its smallest in over 20 years. But that trade did not go away, it simply rerouted. Deficits with Mexico and Vietnam both hit record highs.
The water found a new path downhill, and the overall level stayed about the same.
What’s less talked about is how much AI is driving the import surge. US companies brought in $145 billion more in computers and accessories last year than in 2024. That’s not consumer spending, that’s capital investment. That’s the infrastructure buildout for AI showing up directly in our trade numbers.
