U.S. Trade Deficit Shrinks 25.3% as Exports Surge in January

The U.S. goods and services trade deficit narrowed sharply to $54.5 billion in January 2026, down $18.4 billion from a revised $72.9 billion in December, the U.S. Bureau of Economic Analysis reported Thursday. Exports climbed $15.8 billion to $302.1 billion, while imports slipped $2.6 billion to $356.6 billion. The goods deficit fell $17.5 billion to $81.8 billion, and the services surplus grew $1.0 billion to $27.3 billion. Year-over-year, the deficit dropped $73.9 billion, with exports up 10.4% and imports down 11.3%. Among individual trading partners, the largest January deficits were recorded with Vietnam, $19.0 billion, Taiwan, $17.3 billion, Mexico, $12.8 billion, and China, $12.5 billion. The surplus with the United Kingdom increased $3.2 billion to $7.0 billion, while the deficit with the European Union narrowed $5.0 billion to $6.1 billion.