Despite President Donald Trump's imposition of tariffs, the US trade deficit saw only a marginal decrease in the past year, reaching approximately $901.5 billion, a mere $2 billion reduction from 2024. This slight improvement is primarily attributed to a rise in the services surplus, which offset a 2.1 percent increase in the deficit for goods. Economists, including Julian Hinz from the Kiel Institute for World Economics (IfW), argue that US importers and consumers bear the brunt of these tariffs, with the IfW study indicating 96 percent of the burden falls within the US, contradicting the notion that foreign nations pay. A New York Federal Reserve study reached a similar conclusion, though it was sharply criticized by Trump's economic advisor, Kevin Hassett. The trade deficit experienced a significant surge in December, increasing by nearly a third to over $70 billion due to declining exports and rising imports.