US trade gap stayed high in 2025 as pet food surplus shrank

The U.S. trade deficit narrowed only slightly in 2025, falling to $901.5 billion from $903.5 billion in 2024, according to the U.S. Bureau of Economic Analysis and Census Bureau. That still left it as the third-largest annual deficit on record. The headline improvement came because a larger services surplus helped offset a wider goods deficit, which climbed to a record $1.24 trillion. For the pet sector, GlobalPETS reported a sharper shift: the U.S. dog and cat food trade surplus dropped from $315.1 million in 2024 to $83.6 million in 2025, pointing to a much tighter export-import balance for one of the industry’s most globally traded categories. (bea.gov)

Why it matters: For veterinary professionals, this is less about macroeconomics in the abstract and more about supply chain pressure. Trade volatility, tariffs, and changing import-export flows can affect ingredient costs, finished diet availability, and pricing for therapeutic nutrition and everyday pet food alike. Industry groups have been signaling concern for months: APPA said in May 2025 that a seven-organization coalition was formed to track tariff effects across pet food, animal pharmaceuticals, and other pet categories, while the Pet Food Institute has separately urged U.S. trade officials to address foreign barriers affecting pet food exports. (americanpetproducts.org)

What to watch: Watch for whether tariff policy, retaliatory trade measures, or new export market access in 2026 further squeeze pet food margins, availability, or cross-border competitiveness. (americanpetproducts.org)