Washington: Donald Trump announced late Wednesday that the US trade deficit has decreased by 78% due to tariffs implemented by his administration. He shared this information on his Truth Social platform, stating that the deficit is expected to move into positive territory by 2026 for the first time in many decades.

According to Anadolu Agency, during his second term, Trump raised tariffs on several countries, including China, Canada, and Mexico, aiming to boost US manufacturing and alter the global trade balance in favor of Washington. These tariffs served both as a protectionist economic tool and diplomatic leverage, impacting global markets, increasing economic uncertainty, and straining relations with allies such as Canada and the European Union.

Government data show that the US goods and services trade deficit significantly narrowed to $27.62 billion in October 2025 from a record $140.5 billion in March, marking an approximate 80% decline. However, the deficit widened again in November to $56.82 billion. Trump’s comments were made ahead of the anticipated release of December trade data, which is projected to reveal a $55.50 billion surplus for the month. This would mark the first positive monthly trade balance since 1975, based on government statistics.

Despite the recent improvements, the US is expected to record a trade deficit exceeding $800 billion in 2025, down from a record $1.2 trillion in 2024. The early 2025 shortfall was largely due to a surge in imports as businesses stocked up on goods before Trump’s ‘liberation day’ tariffs in April. US Treasury data indicates that fiscal year-to-date tariff revenues reached $124 billion by January, reflecting a 304% increase compared to the same period in 2025.