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U.S. Trade Deficit Soars 95% Amid Tariff Turmoil

1/29/2026

27 4 Full Breakdown

Summary

Trade Deficit Soars

In November 2025, the U.S. trade deficit rose to $56.8 billion, up 95% from October, as imports increased and exports fell.
The change reflects tariffs imposed by U.S. President Donald Trump that have caused volatility in trade.
The deficit with the European Union expanded.
The deficit with China decreased.
Canada posted a trade deficit of $2.2 billion, largely due to a 24.4% drop in exports, particularly in metals.

Summary

Trump's Tariff Impact

In January 2026, U.S. President Donald Trump’s tariff policies have produced a mixed impact on manufacturing.
Over the past year, factory employment fell by 68,000 and now accounts for 8% of the workforce.
Production has slightly increased, while spending on factory construction has declined since the Biden administration.
Drew Greenblatt of Marlin Steel is investing in new equipment to boost production.

History

Historical Context

The U.S. Trade Act of 1974 established fast track authority, enabling the President to negotiate trade agreements with limited congressional oversight. This act led to a 25% increase in tariffs on certain imports, contributing to a trade deficit of $56.8 billion today. The ongoing impact of these policies continues to shape manufacturing employment and international trade relationships, particularly under President Donald Trump.

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Trade Deficit Soars

In November 2025, the U.S. trade deficit rose to $56.8 billion, up 95% from October, as imports increased and exports fell.
The change reflects tariffs imposed by U.S. President Donald Trump that have caused volatility in trade.
The deficit with the European Union expanded.
The deficit with China decreased.
Canada posted a trade deficit of $2.2 billion, largely due to a 24.4% drop in exports, particularly in metals.

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