U.S. trade deficit narrows

The U.S. trade gap has narrowed sharply, and China now supplies a much smaller slice of what Americans buy from abroad. (bea.gov) The Bureau of Economic Analysis said on April 2 that the U.S. goods-and-services deficit was $57.3 billion in February 2026, up from $54.7 billion in January after a big January drop from December’s revised $72.9 billion. February exports rose to $314.8 billion and imports rose to $372.1 billion. (bea.gov) That overall gap is far below the levels seen in early 2025, when importers rushed in goods ahead of tariff changes. The same BEA release said the year-to-date deficit through February was down $136.1 billion, or 54.8 percent, from the same period in 2025. (bea.gov) China’s role in that trade flow has shrunk. Politico, citing Commerce Department data for December 2025, reported that Chinese goods made up 9 percent of total U.S. imports in 2025, down from 13.4 percent in 2024 and from a peak near 22 percent in 2017. (politico.com) The Census Bureau’s goods-trade tables show the same direction in dollar terms. U.S. goods imports from China fell to $308.4 billion in 2025 from $438.7 billion in 2024, while the bilateral goods deficit dropped to $202.1 billion from $295.5 billion. (census.gov) By early 2026, the bilateral gap was still running lower. Census said the United States imported $21.1 billion of goods from China in January 2026 and $19.0 billion in February, leaving monthly goods deficits of $12.7 billion and $11.0 billion. (census.gov) The shift has not meant the United States stopped importing. Politico reported that Vietnam, Taiwan, Mexico and India gained share as companies moved sourcing away from China after tariffs pushed up the effective U.S. duty burden on Chinese goods. (politico.com) DHL said the China share fell to its lowest level since 2006, while warning that direct trade and total dependence are not the same thing because Chinese parts can still reach the U.S. inside goods shipped from third countries. (eastandpartners.com) That is why the smaller deficit changes the picture without ending the relationship. The U.S. is buying less directly from China, but the supply chain is being rerouted rather than erased. (eastandpartners.com)