The U.S. trade deficit surged to $901.5 billion in 2025, marking one of the largest annual deficits since records began in 1960, according to the U.S. Department of Commerce. In December alone, the trade deficit widened to $70.3 billion, driven by a 3.6% increase in imports and a 1.7% decline in exports. This figure significantly exceeded market expectations of a $55.5 billion deficit for the month. The year was characterized by volatility and erratic tariff policies, contributing to the substantial trade imbalance. The December data underscores ongoing challenges in balancing trade flows amid fluctuating economic conditions.