US Trade Deficit Widens in December as Imports Jump

By: Paul Goldberg — Senior Editor | JRL CHARTS – LGBT Politics

LAS VEGAS — (February 19, 2026) — The U.S. trade deficit widened for the second consecutive month in December, driven by a sharp rise in imports of computer chips, telecommunications equipment, and other technology-related goods.

According to new data released by the U.S. Department of Commerce, the trade gap expanded 32.6% to $70.3 billion — a five-month high — significantly above economists’ expectations.

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Record Annual Goods Deficit

For full-year 2025, the U.S. goods trade deficit widened 2% to a record $1.24 trillion, underscoring persistent structural trade imbalances despite ongoing tariff policies aimed at reshaping global supply chains.

Imports rose nearly 5% for the year, while exports increased 6%. However, the pace of import growth — particularly in capital goods and industrial supplies — outstripped export gains.

The December data showed:

Imports climbed 3.6% to $357.6 billion
Goods imports surged 3.8% to $280.2 billion
Exports declined 1.7% to $287.3 billion

Economists note that the widening deficit likely contributed little to fourth-quarter GDP growth.

AI Infrastructure Driving Import Growth

Much of December’s import surge was tied to technology infrastructure investments.

Capital goods imports rose $5.6 billion, fueled by purchases of:

Computer accessories
Telecommunications equipment
Semiconductor components

These increases are widely viewed as linked to the rapid expansion of artificial intelligence data centers across the United States.

Imports of industrial supplies also increased by $7 billion, largely due to non-monetary gold, copper, and crude oil.

Economists suggest the spike in computer-related imports could signal stronger business equipment investment in coming quarters.

Trade Shifts Away From China

While the U.S. goods trade deficit with China declined sharply in 2025 — falling nearly 32% to $202 billion — overall trade imbalances were not eliminated. Instead, supply chains appear to have shifted geographically.

The U.S. trade deficit:

Doubled with Taiwan to $147 billion
Increased 44% with Vietnam to $178 billion

The reallocation of sourcing away from China has not reduced the overall goods shortfall but rather redistributed it across other manufacturing hubs.

Tariffs and Manufacturing Impact

President Donald Trump’s tariff policies were designed to reduce trade imbalances and bolster domestic manufacturing. However, factory employment fell by 83,000 jobs between January 2025 and January 2026, suggesting limited short-term impact on domestic production capacity.

Chad Bown, senior fellow at the Peterson Institute for International Economics, noted that historical research shows tariffs rarely produce sustained reductions in trade deficits.

“There just isn’t strong empirical evidence that tariffs materially shrink overall trade gaps,” Bown stated.

Economic Outlook

Despite strong import growth, consumer goods imports declined in December, largely due to fluctuations in pharmaceutical purchases — an area that has experienced volatility amid shifting tariff structures.

Some economists argue that elevated imports could eventually translate into stronger business investment and inventory accumulation, potentially supporting economic growth in early 2026.

Still, the December report highlights ongoing structural imbalances in U.S. trade flows, particularly as artificial intelligence infrastructure drives capital spending higher.

JRL CHARTS will continue monitoring trade data as policymakers evaluate tariff strategy and global supply chain realignment.

For real-time economic reporting and strategic financial analysis, stay with JRL CHARTS Business Finance — Where Markets, Policy, and Global Trade Converge.