Trump says US trade deficit reduced by 78% due to tariffs

ISTANBUL

Donald Trump said late Wednesday that the US trade deficit has been reduced by 78% as a result of tariffs imposed by his administration.

“THE UNITED STATES TRADE DEFICIT HAS BEEN REDUCED BY 78% BECAUSE OF THE TARIFFS BEING CHARGED TO OTHER COMPANIES AND COUNTRIES,” Trump wrote on his Truth Social platform.

He added that the deficit will “go into positive territory” in 2026 for the first time “in many decades.”

During his second term, Trump increased tariffs on numerous countries, primarily China, Canada, and Mexico, in a bid to revive US manufacturing and shift the global trade balance in Washington’s favor.

He has used tariffs both as a protectionist economic measure and as diplomatic leverage. The policy has roiled global markets, heightened economic uncertainty, and strained relations with allies such as Canada and the European Union.

The US goods and services trade deficit narrowed sharply to $27.62 billion in October 2025 from a record $140.5 billion in March - a decline of about 80%, according to government data.

However, the deficit widened again in November to $56.82 billion.

Trump’s remarks came ahead of the release of December trade data scheduled for Thursday. The figures are projected to show a $55.50 billion surplus for the month, the first positive monthly trade balance since 1975, based on government statistics.

Despite the recent improvement, the US remains on track to post a trade deficit exceeding $800 billion in 2025, down from a record $1.2 trillion in 2024. Much of this year’s shortfall is attributed to a surge in imports during the first quarter, as businesses rushed to stockpile goods ahead of Trump’s “liberation day” tariffs introduced in April.

According to US Treasury data, fiscal year-to-date tariff revenues reached $124 billion as of January, marking a 304% increase compared to the same period in 2025.