The US trade deficit has fallen to its lowest level in nearly five years, shrinking by more than 35 per cent from a year ago, according to a White House statement that credited President Donald Trump’s tariff-driven trade strategy for the improvement.

The administration said recent data showed stronger export performance, reduced imports, and a significant narrowing of the trade gap with China. It described the trend as evidence that the President’s “America First” trade approach is delivering tangible economic results after years of policies it argues weakened US producers.

According to the White House, US exports rose 6 per cent year-on-year, reaching their second-highest level on record. Inflation-adjusted consumer goods exports were reported at their highest level ever, reflecting what the administration characterised as rising global demand for American products.

The trade deficit with China also narrowed to its second-lowest level since 2009, a development the administration said underscored the impact of tariffs used to push for changes in market access and trade practices.

The White House said trade flows contributed positively to economic growth in the third quarter of 2025, with real exports growing at an annual rate of 4.1 per cent and imports declining by about 5 per cent, adding roughly one percentage point to GDP growth.

It further claimed that November’s trade deficit was reduced by more than half compared to the same period last year, attributing the shift partly to higher tariff revenues. The administration argued that the combination of rising exports, falling imports and tariff income was strengthening the position of American workers, farmers and manufacturers.

Since unveiling what it calls a historic trade agenda earlier this year, the administration says tariffs have provided leverage to secure new and revised trade agreements with partners representing more than half of global GDP. It also linked the policy to large-scale domestic investment announcements and job creation as companies shift production back to the United States.