White House Says Trade Deficit Hits Lowest Level Since 2020 Under Trump Agenda
The White House announced this week that the U.S. trade deficit has narrowed to its smallest level since mid-2020, falling more than 35 percent compared to last year. Administration officials say the figures reflect early results of President Donald Trump’s renewed America First trade agenda.
According to the White House, U.S. exports have risen 6 percent year over year, reaching their second-highest level on record. Inflation-adjusted exports of consumer goods also hit an all-time high, signaling stronger demand for American-made products abroad.
At the same time, the seasonally adjusted trade deficit with China has narrowed to its second-smallest level since 2009, a shift the administration attributes to tariffs and renegotiated trade terms.
Trade Data Boosts GDP Growth
The White House pointed to third-quarter 2025 data showing real exports growing at a 4.1 percent annual rate, while imports declined by roughly 5 percent. Combined, those changes added approximately one percentage point to real GDP growth.
Officials also highlighted November figures, noting that the monthly trade deficit was cut by more than half compared to the same month last year. The administration says the reduction was driven in part by increased tariff revenue.
The White House argues that tariffs have allowed the U.S. to rebalance trade relationships after decades of policies that favored foreign producers while limiting access for American workers, farmers, and manufacturers.
Tariffs Used as Leverage in New Trade Deals
Since announcing a major trade initiative in April, the administration says tariffs have given President Trump leverage to secure new or revised trade agreements covering more than half of global GDP.
Countries listed by the White House include the United Kingdom, the European Union, Japan, China, South Korea, Indonesia, Malaysia, Thailand, Vietnam, the Philippines, Cambodia, El Salvador, Ecuador, Argentina, Guatemala, Switzerland, and Liechtenstein.
Administration officials describe the agreements as improving market access for U.S. exports while placing pressure on trading partners to reduce barriers and rebalance deficits.
Investment and Onshoring Claims
The White House also claims the trade agenda has encouraged companies to shift production back to the United States. According to the administration, firms have announced trillions of dollars in new investment tied to domestic manufacturing, infrastructure, and job creation.
Officials say these commitments are expected to generate tens of thousands of new jobs and strengthen U.S. competitiveness in emerging industries.
The administration framed the latest trade data as evidence that its strategy is delivering measurable results, positioning the United States as a dominant player in global trade while prioritizing domestic economic growth.