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flag President Trump claims a 78% trade deficit drop from tariffs, but data shows a 95% monthly rise in November 2025, with the annual deficit up 4.1%.

flag On February 19, 2026, President Donald Trump claimed the U.S. trade deficit dropped 78% due to tariffs, including "Liberation Day" duties introduced in April 2025. flag However, Commerce Department data shows the deficit rose to $56.8 billion in November 2025, a 95% monthly increase, driven by higher imports and lower exports. flag Economists say earlier declines were likely due to temporary factors, and the deficit for the first 11 months of 2025 was still 4.1% higher than in 2024. flag The U.S. trade gap with China fell below that with the EU, while the effective tariff rate reached nearly 17%, the highest since 1932. flag Legal challenges remain as the Supreme Court reviews the use of a 1970s emergency law to justify tariffs, with the administration preparing alternatives if the policy is struck down.

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