White House Reports Trade Deficit Hits Five-Year Low
The recent trade deficit report reveals significant changes in the U.S. economy. According to the latest data, the trade deficit has decreased to its lowest level since mid-2020. This marks a notable reduction of over 35% compared to last year.
Key Highlights of the Trade Deficit Report
This shift in the trade balance suggests positive trends for the American economy. Here are the essential facts from the report:
- Exports Increase: U.S. exports rose by 6% from last year, reaching their second-highest value on record.
- Consumer Goods: Inflation-adjusted exports of consumer goods are at their highest level ever.
- Trade Deficit with China: The seasonally adjusted trade deficit with China has narrowed to its second-smallest level since 2009.
- Quarterly Growth: In the third quarter of 2025, real exports grew by an annual rate of 4.1%, while imports declined by about 5%.
Impact on GDP and Employment
This positive trade balance has contributed approximately 1% to real GDP growth. Additionally, the trade deficit in November was cut by more than half compared to the same month last year. This improvement is partly attributed to increased tariff revenues.
America First Trade Policy
The current administration’s America First trade agenda is credited for these beneficial changes. President Trump has implemented tariffs to leverage better trade deals with significant global partners. These countries encompass over half of the world’s GDP, including:
- United Kingdom
- European Union
- Japan
- China
- Republic of Korea
- Indonesia
- Malaysia
- Thailand
- Vietnam
- Philippines
- Cambodia
- El Salvador
- Ecuador
- Argentina
- Guatemala
- Switzerland
- Liechtenstein
With the ongoing commitment to this trade strategy, numerous companies are anticipated to invest trillions in the U.S. This initiative aims to bring jobs back to America, creating tens of thousands of new employment opportunities.
In conclusion, the narrowing trade deficit signifies a strengthening U.S. economy, underscoring the positive effects of current trade policies. As the nation positions itself as a global leader in job creation, the focus remains on enhancing the market for American workers and manufacturers.
