Fact Check: Is Trump's claim US trade deficit contracted by 78% true?

WASHINGTON, DC: President Donald Trump, in his recent post on Truth Social, stated that the United States trade deficit has been reduced by 78% because of the tariffs he imposed on other countries and companies. The claim has raised many eyebrows, with many questioning the veracity of the claims made by the president. Let us fact-check the claim.

Claim: US trade deficit contracted sharply by 78%

Trump took to Truth Social on Wednesday, February 18, writing, “The United States trade deficit has been reduced by 78% because of the tariffs being charged to other companies and countries. It will go into positive territory during this year, for the first time in many decades.”

While some celebrated the announcement as true, many were sceptical about it, questioning its authenticity and asking for data.

Fact Check: Official figures show trade deficit fell by only 0.2%, not 78%

The claims made by Trump are false, as official figures show the US trade deficit fell by only 0.2% in 2025, not 78%.

According to a report by CNBC, the US trade deficit in December 2025 increased, marking the end of a year in which the overall gap between imports and exports remained largely unchanged despite efforts by the Trump administration to reduce it.

The goods and services deficit increased in December as a result of a $5 billion decline in exports to $287.3 billion and a $12.3 billion increase in imports to $357.6 billion.

The services surplus shrank to $29 billion, while the goods deficit widened to $99.3 billion. As exports fell to $292.1 billion in November, the trade gap had already expanded to $56.8 billion from $29.2 billion in October.

The US had the biggest goods deficits with China ($202.1 billion), Mexico ($196.9 billion), and the European Union ($218.8 billion).

In order to avoid tariffs, imports increased early in the year before slowing down, and by October, the monthly deficit had dropped to its lowest level since 2009, according to a CNBC report.

Donald Trump's tariffs and policy shift

President Donald Trump speaks at the Coosa Steel Corporation on February 19, 2026, in Rome, Georgia (Chip Somodevilla/Getty Images)

The report came almost a year after Trump declared in April 2025 that more than 100 countries would be subject to tariffs known as 'Liberation Day,' calling it America's 'declaration of economic independence' on April 2, and imposed 'reciprocal tariffs' between 10% and 50%. 

However, following trade agreements, the administration loosened its stance toward several nations, including South Korea, Japan, China, and India, over the ensuing months.