In the United States, the current account deficit showed a reduction in the fourth quarter. This improvement, however, may not be long-lasting as there was a substantial increase in goods imports in January to a record level. This surge was driven by businesses purchasing foreign goods in advance to avoid tariffs.

The Commerce Department's Bureau of Economic Analysis reported that the current account deficit, which includes the flow of goods, services, and investments to and from the country, decreased by $6.3 billion, equivalent to 2.0%, reaching $303.9 billion. Initially reported as $310.9 billion, the deficit in the third quarter was revised to a record high of $310.3 billion. Economists had predicted the deficit in the fourth quarter to rise to $325.5 billion.

The improvement in the deficit was due to a shift back to surplus in the primary income balance. The current account gap was 4.1% of the gross domestic product (GDP), declining from 4.2% in the previous quarter. The deficit had peaked at 6.3% of GDP in 2006. By 2024, the current account deficit had widened by 25.2% to a record $1.13 trillion, representing 3.9% of the GDP.

The current large deficit has not had a significant impact on the value of the dollar yet, given its role as a reserve currency. Nevertheless, economists warn that the growing deficit, along with the increasing federal government budget deficit, poses a risk to the strength of the dollar.

In the fourth quarter, imports of goods grew by $5.7 billion to $845.3 billion, primarily due to nonmonetary gold, compensating for a sharp decline in capital goods. Service imports rose by $4.8 billion to $211.0 billion, driven by personal travel. On the other hand, goods exports declined by $10.8 billion to $519.2 billion, influenced by decreases in various goods such as civilian aircraft, computer components, and semiconductors.

The goods trade deficit expanded to $326.1 billion, the highest since early 2022. The deficit further widened in January, reaching an all-time high of $329.5 billion, as companies accelerated imports in anticipation of potential tariffs imposed by the administration of President Donald Trump. Despite the announcement of various tariffs, some duties were postponed until April.