Trump’s Tariffs Send US Trade Deficit With China to 21-Year Low

The US annual trade deficit with China shrank in 2025 to the smallest in more than two decades — and widened to record levels with Mexico and Vietnam — as President Donald Trump’s sweeping tariffs reordered global trade.

The shortfall with China stood at about $202 billion last year, according to data published Thursday by the Commerce Department. Canada’s surplus with the US also narrowed as shipping was upended despite the USMCA trade deal Trump negotiated with the country’s North American neighbors in his first term.

Taiwan’s surplus with the US, meanwhile, nearly ...