US trade deficit data came in heavy for December. The Commerce Department said the monthly gap hit $70.3 billion. That was $17.3 billion higher than November. Economists surveyed by Dow Jones expected $55.5 billion.
The number beat that by a wide margin.
For the full year, the trade deficit reached $901.5 billion. That was down just 0.2 percent from 2024, a difference of $2.1 billion. It remained one of the largest totals on record.
Only 2022 was worse, when the gap hit $923.7 billion. The Trump administration had pushed to narrow the deficit, but the yearly imbalance barely changed.
Trade flows shift in December
Exports for 2025 totaled $3.43 trillion. That was up $199.8 billion from 2024. Imports came in at $4.33 trillion. That was an increase of $197.8 billion from the prior year. The difference between those two numbers produced the $901.5 billion deficit.
The United States ran its largest goods deficit with the European Union at $218.8 billion. China followed at $202.1 billion. Mexico came next at $196.9 billion. Those three partners accounted for the biggest country gaps.
In December, goods imports rose. The report showed higher purchases of computer accessories and motor vehicles. At the same time, exports declined. The drop mainly came from fewer outbound shipments of gold. The trade report listed gold as a key driver behind the export fall.
After adjusting for prices, the merchandise trade deficit widened to $97.1 billion in December. That was the largest real goods gap since July. Gold trade, unless used for industrial purposes such as jewelry production, is excluded from the government’s GDP calculation. That matters for how the trade numbers feed into growth data.
Economists are now updating fourth-quarter GDP estimates. The official GDP release is due Friday. Before the trade data, the Federal Reserve Bank of Atlanta’s GDPNow model estimated that net exports would add about 0.6 percentage points to fourth-quarter growth. The model currently shows overall growth at 3.6 percent.
Jobless claims data roll in
Labor market data also arrived with the trade numbers. For the week ending February 14, seasonally adjusted initial claims for unemployment insurance totaled 206,000. That was a drop of 23,000 from the prior week’s revised level. The previous week was revised up by 2,000, from 227,000 to 229,000.
The four-week moving average stood at 219,000. That was down 1,000 from the prior week’s revised average. That earlier average was revised up by 500, from 219,500 to 220,000.
The seasonally adjusted insured unemployment rate was 1.2 percent for the week ending February 7.
That was unchanged from the week before. The number of people receiving benefits on a seasonally adjusted basis was 1,869,000. That was an increase of 17,000 from the prior week’s revised level.
The prior level was revised down by 10,000, from 1,862,000 to 1,852,000. The four-week moving average for insured unemployment was 1,845,250, up 1,000. The previous average was revised down by 2,500, from 1,846,750 to 1,844,250.
On an unadjusted basis, initial claims under state programs totaled 207,694 for the week ending February 14. That was a decrease of 42,509, or 17.0 percent.
Seasonal factors had expected a drop of 19,669, or 7.9 percent. In the comparable week in 2025, there were 223,538 claims.
The unadjusted insured unemployment rate was 1.4 percent for the week ending February 7. That was unchanged. The unadjusted number of insured unemployed people was 2,207,430. That was up 4,919, or 0.2 percent.
Seasonal factors had expected a decrease of 14,819, or 0.7 percent. A year earlier, the rate was 1.4 percent, and the level was 2,191,941.
Total continued weeks claimed across all programs for the week ending January 31 came in at 2,239,250. That was down 9,081 from the previous week. In the comparable week in 2025, total continued claims were 2,219,025. No state triggered the Extended Benefits program during that week.
Initial claims filed by former federal civilian employees totaled 695 for the week ending February 7. That was up 80 from the prior week. Newly discharged veterans filed 444 initial claims, up 66.
Continued claims from former federal employees totaled 12,419 for the week ending January 31, down 606. Newly discharged veterans claiming benefits totaled 4,311, down 316.