President Trump’s tariffs have defied naysayers as the U.S. trade deficit narrowed sharply in the fourth quarter.
According to Breitbart, the three-month average goods deficit fell to $80.5 billion in the fourth quarter, down 27 percent from $109.6 billion during the same period in 2024. The Commerce Department’s Bureau of Economic Analysis and Census Bureau said that the combined goods and services deficit dropped even more sharply, falling nearly 40 percent to $50.7 billion from $83.6 billion in 2025. These figures show that President Trump’s tariffs are boosting economic momentum, as the country has reduced its reliance on imported goods while opening foreign markets to U.S. exports.
ABC News reported that capital goods exports increased from 5.7 percent to $2.20 trillion in 2025, and that services exports increased by $0.5 billion to $106.5 billion. According to Breitbart, the data has also shown rebalancing by country. While the trade deficit with China plunged to $202.1 billion in 2025, trade with Asian countries like Taiwan, with a record $146.8 billion, and Vietnam, with $178.2 billion, has been steadily increasing as more companies invest in AI infrastructure.
The numbers also reveal a steadying economy and stabilizing labor market. Reuters reported that initial claims for state unemployment benefits dropped 23,000 to a seasonally adjusted 206,000 for the week of February 14. Last year, in January, these claims were 232,000.
Despite negative predictions and forecasts from economists, President Trump’s tariffs haven’t had as much impact on higher prices and the cost of living as was predicted. Many economists are now forecasting steady growth for 2026.
CBS News reported that Commerce Secretary Howard Lutnick shared his forecast with Fox Business from the World Economic Forum in Switzerland, “This quarter — the first quarter of 2026 — the United States of America’s $30 trillion economy will exceed 5% growth,” he added, “You’re going to see 6% growth from the United States of America.”
A White House official confirmed that Lutnick’s forecast is in line with the Atlanta Fed’s forecast for fourth-quarter GDP growth.
