Trump tariffs narrow US trade deficit to five-year low: White House

WASHINGTON: The US trade deficit narrowed to its smallest level since mid-2020, shrinking by more than 35 percent from a year earlier, according to a White House press release that credited President Donald Trump's tariff-driven trade strategy with delivering measurable gains for the American economy.

The administration said the latest data showed a sharp improvement in trade performance, pointing to stronger exports, reduced imports, and a marked contraction in the trade gap with China. It described the figures as further evidence that the President's "America First" trade agenda is producing results after years of policies that, in its view, disadvantaged US producers.

US exports rose 6 percent from a year earlier, reaching their second-highest value on record, the release said. Inflation-adjusted exports of consumer goods were described as the largest ever, underscoring what the administration portrayed as growing global demand for American-made products.

At the same time, the seasonally adjusted US trade deficit with China narrowed to its second-smallest level since 2009. The administration has made rebalancing trade with China a central pillar of its economic strategy, using tariffs as leverage to press for changes in market access and trade practices.

The data also showed a positive contribution to overall economic growth. In the third quarter of 2025, real exports grew at an annual rate of 4.1 percent, while imports fell by around 5 percent, adding about one percentage point to real gross domestic product growth, according to the release.

The White House said November's trade deficit was cut by more than half compared to the same month last year, attributing the sharp improvement to a surge in tariff revenues. It argued that the combination of higher exports, lower imports, and increased tariff collections was helping to level the playing field for American workers, farmers, and manufacturers.

The administration framed the latest figures as a reversal of what it described as decades of weak trade policies that allowed foreign countries to flood US markets with goods while restricting access for American producers. It said President Trump had delivered better terms for domestic industries by using tariffs to compel trading partners to negotiate.

Since announcing what it called a historic trade agenda in April, the President's use of tariffs has given the United States unprecedented leverage to secure new and improved trade deals, the release said. (IANS)

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