USTR chief touts tariff gains: 24% trade deficit drop in one year
Ambassador Jamieson Greer told Congress that President Trump's tariff and reciprocal trade strategy has reversed the U.S. trade deficit trend within a year of implementation. According to the USTR opening statement to the House Ways and Means Committee on April 22, 2026, the U.S. goods trade deficit fell 24% from April 2025–February 2026 versus the prior year, and China's share of U.S. imports hit a 25-year low. The statement claims manufacturing job growth has resumed, real worker pay has risen $2,400 annually, and agricultural exports surged with the trade deficit in farm goods collapsing from $6.2 billion monthly to under $1 billion. USTR says nine reciprocal trade deals and nine framework agreements have been negotiated in one year, compared to 14 free trade agreements since 1985.
Photo: Wolfgang Weiser / Pexels# USTR Chief: Tariffs and Reciprocal Deals Cut Trade Deficit 24% in One Year
Ambassador Jamieson Greer told the House Ways and Means Committee on April 22, 2026, that President Trump's trade policy has sharply reversed the U.S. trade deficit within 12 months of implementation, citing what he called a national emergency requiring urgent correction of longstanding imbalances.
The Deficit Reversal
Greer highlighted dramatic shifts in trade metrics since the rollout of the President's reciprocal trade program in April 2025:
"Since the introduction of the President's reciprocal trade program in April 2025 through February 2026 (the latest available data), the U.S. trade deficit in goods decreased by 24 percent compared with the same period a year earlier."
During the Biden administration (2020–2024), the U.S. trade deficit in goods had increased by over 40%, worsening an average of nearly 8% per year. In 2025 under Trump, that annual rate of increase slowed to just 2%, then reversed into decline. China-specific improvements were pronounced: the U.S. trade deficit with China fell to $202 billion in 2025—the lowest since 2004—and China's share of total U.S. imports fell to roughly 9%, the lowest since China joined the WTO in 2001.
Manufacturing and Labor Benefits
Greer claimed the tariff-driven policy has generated immediate labor market gains. Real manufacturing worker pay rose by $2,400 in one year, compared to a $830 decline over Biden's four years. Manufacturing productivity surged 2.4% in Q4 2025 versus Q4 2024, and manufacturing wages increased 4.7%. The statement reported nearly 440,000 manufacturing job openings and noted that Q1 2026 showed positive manufacturing job gains—reversing the 230,000-job loss from January 2023 to January 2025.
Orders for capital goods for production "are skyrocketing," exceeding $4 billion monthly in Q4 2025—levels unseen since before China's 2001 WTO entry, according to Greer.
Agriculture and Services
The agricultural sector saw what USTR calls "double-digit growth in exports in 2025 for key commodities like corn and dairy." The agricultural trade deficit, which had grown to $6.2 billion monthly by the end of Biden's term, fell to an average of less than $1 billion over the last five months of 2025. The U.S. services trade surplus reached a record $339.5 billion in 2025.
Deal Volume and Framework
Greer emphasized the pace of negotiation: "In the last year alone, we have concluded 9 Agreements on Reciprocal Trade and we have entered 9 additional framework deals." This compares to only 14 free trade agreements negotiated since 1985. The reciprocal model allows trading partners to agree to certain U.S. tariff levels "in furtherance of its rebalancing and reshoring goals while simultaneously reducing its long-standing tariff and non-tariff barriers against U.S. exports."
Greer cited record U.S. exports: $302 billion in January 2026 and $315 billion in February 2026, which he called the highest monthly export figures in U.S. history.
What this means for shippers
These rapid shifts in tariff regimes and reciprocal trade agreements directly affect import and export costing. For merchants and freight forwarders, tariff rates on major trading partners are now volatile and subject to continuous negotiation. Accurate landed-cost estimation requires real-time tariff intelligence, especially for goods from China and partners newly subject to reciprocal tariffs. Learn how to calculate landed cost with current tariff data.
