The United States trade deficit widened sharply in December, reaching a five-month high of $70.3 billion, according to the Commerce Department. The goods trade shortfall for 2025 hit a record $1.24 trillion, despite tariffs imposed by President Donald Trump on foreign-manufactured products. Imports rose 3.6 percent in December to $357.6 billion, driven by higher purchases of industrial supplies, copper, crude oil, and capital goods such as computer accessories and telecommunications equipment. Exports fell 1.7 percent to $287.3 billion, though semiconductor and pharmaceutical shipments increased.

The report showed that trade made little or no contribution to fourth-quarter GDP growth. American companies boosted imports of computer chips and other technology goods from Taiwan to support large-scale investments in artificial intelligence. While the goods trade deficit with China dropped nearly 32 percent to $202 billion amid ongoing tensions, trade shifted toward Taiwan and Vietnam, where deficits rose sharply. Factory employment declined by 83,000 jobs between January 2025 and January 2026, underscoring limited benefits from tariffs.

Economists noted that strong imports may reflect robust business investment, particularly in AI-related infrastructure such as data centers, suggesting continued demand for technology equipment.