Washington, Dec 13 (NationPress) The US trade deficit has contracted to its lowest point since mid-2020, decreasing by over 35 percent compared to a year ago, as stated in a press release from the White House. This achievement has been attributed to President Donald Trump's tariff-driven trade approach, which is said to have yielded tangible benefits for the American economy.

The administration highlighted that the most recent data reveals a significant enhancement in trade dynamics, with an increase in exports, a reduction in imports, and a notable decrease in the trade deficit with China. These statistics were presented as further proof that the President’s “America First” trade agenda is yielding positive outcomes after years of policies perceived to disadvantage US producers.

According to the release, US exports rose by 6 percent year-over-year, achieving their second-highest recorded value. Exports of consumer goods, adjusted for inflation, reached their all-time peak, emphasizing the administration's narrative of rising global demand for products made in America.

Simultaneously, the seasonally adjusted US trade deficit with China fell to its second-lowest level since 2009. The administration has prioritized rebalancing trade with China as a fundamental aspect of its economic strategy, employing tariffs to advocate for improved market access and trade practices.

The data also indicated a favorable impact on overall economic growth. In the third quarter of 2025, real exports expanded at an annual rate of 4.1 percent, while imports decreased by approximately 5 percent, contributing around one percentage point to real gross domestic product growth, as per the release.

The White House noted that the trade deficit for November was slashed by more than half in comparison to the same month last year, crediting this significant improvement to a spike in tariff revenues. It asserted that the combination of increasing exports, declining imports, and growing tariff collections is leveling the playing field for American workers, farmers, and manufacturers.

The administration portrayed the latest statistics as a reversal of decades of ineffective trade policies that allowed foreign nations to inundate US markets with goods while limiting access for American producers. It claimed that President Trump has secured better conditions for domestic industries through the strategic use of tariffs.

Since unveiling what it termed a historic trade agenda in April, the President’s tariff usage has granted the United States unprecedented leverage to negotiate new and enhanced trade agreements, as mentioned in the release. These agreements encompass more than half of the global GDP and involve key partners like the United Kingdom, the European Union, Japan, China, and the Republic of Korea.

The list of cited countries also includes Indonesia, Malaysia, Thailand, Vietnam, the Philippines, Cambodia, El Salvador, Ecuador, Argentina, Guatemala, Switzerland, and Liechtenstein, illustrating the administration’s assertion that its trade strategy has achieved a wide global impact across both developed and emerging economies.

In addition to trade balances, the White House connected the tariff strategy to a surge in domestic investment. As the President embarks on what the release described as a bold America First trade agenda, numerous companies have announced trillions of dollars in new investments, relocating workers from abroad and creating tens of thousands of new American jobs.

The administration noted that these investment pledges are establishing the United States as a leading player in the jobs of the future, reinforcing the argument that trade policy serves as a vital tool for industrial and employment strategies.

The US trade deficit quantifies the gap between the value of goods and services the nation imports versus what it exports. A shrinking deficit may result from increased exports, decreased imports, or a combination of both, and is closely monitored by policymakers as a measure of trade competitiveness.

Historically, tariffs have been a contentious aspect of US trade policy, lauded by supporters as a means to safeguard domestic industries, while criticized by detractors for raising costs and risking retaliation. Under President Trump, tariffs have become a more aggressive component of trade negotiations with major partners, transforming the US approach to global commerce during his second term.