White House: Trump tariffs reduce the US trade imbalance to a five-year low

White House: According to a news release, President Donald Trump’s tariff-driven trade approach has produced quantifiable benefits for the American economy, and the US trade deficit has shrunk to its lowest level since mid-2020, down more than 35% from the previous year.

According to the government, the most recent statistics showed a significant improvement in trade performance, indicating increased exports, decreased imports, and a noticeable narrowing of the trade deficit with China. After years of policies that, in its opinion, harmed US manufacturers, it highlighted the numbers as another proof that the President’s “America First” trade approach is having an impact.

According to the statement, US exports reached their second-highest value ever, up 6% from the previous year. Consumer goods exports adjusted for inflation were reported to be the highest ever, highlighting what the government said was an increase in demand for American-made items throughout the world.

Meanwhile, the US-China trade gap, adjusted for season, shrank to its second-lowest level since 2009. Using tariffs as leverage to demand changes in market access and trade practices, the administration has made rebalancing trade with China a key component of its economic policy.

The statistics have also shown a favorable impact on the expansion of the economy as a whole. According to the report, real exports increased at an annual pace of 4.1% in the third quarter of 2025 while imports decreased by around 5%, contributing about one percentage point to the rise of the real GDP domestic product.

November’s trade imbalance was reduced by more than half, according to the White House, which attributed the dramatic improvement to a spike in tariff receipts. It made the case that greater tariff collections, decreased imports, and increased exports were all contributing to the leveling of the playing field for American manufacturers, farmers, and laborers.

The new data were presented by the administration as a reversal of what it called decades of lax trade practices that restricted access for American companies while allowing other nations to flood US markets with products. It claimed that by using tariffs to force trade partners to engage in negotiations, President Trump has improved conditions for American sectors.

According to the statement, the President’s use of tariffs has given the United States unmatched power to negotiate new and better trade agreements since outlining what it dubbed a historic trade agenda in April. Major partners including the United Kingdom, the European Union, Japan, China, and the Republic of Korea are included in these accords, which encompass more than half of the world’s GDP.

In keeping with the administration’s assertion that its trade policy has had a wide global impact on both developed and developing nations, the list of nations mentioned also includes Indonesia, Malaysia, Thailand, Vietnam, the Philippines, Cambodia, El Salvador, Ecuador, Argentina, Guatemala, Switzerland, and Liechtenstein.

The White House connected the tariff policy to a surge in domestic investment in addition to trade balances. Numerous businesses have announced billions of dollars in new investment as they onshore foreign labor and create tens of thousands of new American jobs as the President pursues what the release termed as a strong America First trade strategy.

In support of its claim that trade policy may be a key instrument of industrial and employment strategy, the administration said that these investment pledges are establishing the United States as the leading player for the jobs of the future.

The difference between the amount of products and services the US purchases and exports is measured by the trade deficit. Policymakers often keep a close eye on a reducing deficit as a measure of trade competitiveness, which might be caused by better exports, weaker imports, or a combination of the two.

Long a controversial tool in US trade policy, tariffs are attacked by opponents for increasing prices and provoking retaliation, while advocates hail them as a tool to safeguard home industries. In his second term, President Trump has changed the US approach to international trade by using tariffs more aggressively as a fundamental component of trade discussions with key allies.