US trade deficit remains near record high

The US trade deficit narrowed to $122.7 billion in February 2025 from a record high of $130.7 billion in January, slightly below market forecasts of a $123.5 billion shortfall. The improvement was primarily driven by a decline in the goods deficit, which shrank by $8.8 billion to $147 billion, while the services surplus contracted by $0.8 billion to $24.3 billion.

US trade deficit remains near record high

Exports rose 2.9% to $278.5 billion, bolstered by strong shipments of nonmonetary gold, passenger cars, computer accessories, trucks, buses, and civilian aircraft. However, declines in fuel oil, transportation services, and government goods and services weighed on overall export growth. Meanwhile, imports remained relatively unchanged at $401.1 billion, hovering near record highs after January’s surge, which was fueled by companies stockpiling ahead of anticipated tariffs.

Imports decline Imports declined for finished metal shapes, nonmonetary gold, and civilian aircraft, but these decreases were offset by increased purchases of cell phones and other household goods, pharmaceutical preparations, and computers. Trade imbalances with key partners shifted, with the deficit narrowing with China, Switzerland, and Canada, while widening with the European Union, Mexico, and Vietnam. Looking ahead, analysts expect trade flows to remain volatile as businesses adjust to new tariff policies set to take effect in April, alongside ongoing global economic uncertainties and shifting supply chain dynamics.