Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - US tariff revenue fell for the second straight month in December 2025. This trend signals that trade policies are finally squeezing import volumes significantly.
Key Takeaways:
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US tariff revenue dropped 10 percent from its October peak.
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Import volumes from China fell sharply due to trade barriers.
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The budget deficit remains high despite record annual tariff income.
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The US Treasury reported total revenue of 27.89 billion dollars for December. This figure represents a 10 percent drop from the record peak in October.
The decline followed President Trump's decision to scale back several key tariffs in November. Total 2025 revenue still hit a historic 264.05 billion dollars.
Impact on Trade Volumes
Commerce Department data showed the trade gap narrowed to 29.4 billion dollars. This level is the lowest since 2009 due to lower shipping activity.
According to a report by Project44, imports from China fell by 28 percent. Meanwhile, US exports to China dropped 38 percent in the same period.
This contraction reflects a massive shift in the trade map between these giants. Global players like Apple Inc. are forced to rethink their supply chains.
The market is currently entering a wait and see phase regarding these logistics. Investors are monitoring how retailers manage their inventory amidst these trade shifts.
Fiscal Outlook and Legal Risks
Despite high tariff income, the US government still faces a massive budget deficit. The fiscal gap reached 602 billion dollars in the first quarter.
Plans for a 500 billion dollar military budget hike seem hard to fund. This proposed hike is more than double the total tariff revenue of 2025.
Markets are now waiting for the Supreme Court's ruling on blanket tariffs. This legal uncertainty adds more pressure for global investors and big importers.
Read also: Trump vs Dimon: The High-Stakes Clash Over Fed Independence
While the US tightens its borders, the European Union is expanding its reach. The EU-Mercosur deal is set to create a massive new free-trade zone.
Reference:
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Yahoo Finance, US tariff revenue dropped by almost $3 billion from November to December. Accessed on January 14, 2026
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Disclaimer
Gotrade is the trading name of Gotrade Securities Inc., registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
