US trade gap stayed high in 2025 as pet food surplus shrank
The U.S. closed 2025 with a goods-and-services trade deficit of $901.5 billion, down just $2.1 billion from 2024, a marginal improvement that still left the annual gap historically high. Federal trade data show exports rose to $3.43 trillion and imports to $4.33 trillion in 2025, while the goods deficit widened to a record $1.24 trillion and the services surplus expanded to $339.5 billion. In other words, the overall number improved slightly, but the underlying goods picture worsened. (bea.gov)
That backdrop matters for the pet industry because pet food sits at the intersection of agriculture, manufacturing, and consumer packaged goods. GlobalPETS highlighted that the U.S. dog and cat food trade surplus fell steeply in 2025, from $315.1 million to $83.6 million. While that still represents a surplus, it suggests the cushion between exports and imports narrowed substantially in a category that has historically benefited from strong overseas demand for U.S.-made products. (bea.gov)
The broader trade environment was shaped by tariffs and shifting sourcing patterns. AP reported that despite tariff actions, the U.S. goods deficit still reached a record in 2025, with imports boosted in part by demand for technology goods. At the same time, trade relationships remained unsettled across agriculture and consumer products. China, for example, announced additional tariffs in March 2025 on a range of U.S. farm exports after new U.S. tariff actions, underscoring the risk that trade friction can spill into animal-related categories even when pet food is not always the headline item. (apnews.com)
Pet industry organizations have been preparing for exactly that kind of volatility. In May 2025, APPA announced a coalition with IndiePet, NASC, PAN, PFI, PIDA, and WPA to coordinate around tariff impacts. APPA’s chief legal officer said the group was examining how tariffs could affect live animals, manufactured products, pet food, and animal pharmaceuticals, and the coalition began collecting affected tariff codes and business impact stories to support advocacy with regulators. Separately, Pet Food Institute comments to the U.S. Trade Representative argued that U.S. pet food exports face significant foreign tariff and tax barriers in key markets, including Brazil. (americanpetproducts.org)
That combination, weaker pet food trade performance at home and persistent market-access barriers abroad, helps explain why a still-positive trade balance can feel fragile. USDA’s trade materials also show dog and cat food remains a meaningful agricultural export category in markets such as Canada and the Dominican Republic, reinforcing that export conditions matter for U.S. manufacturers. Canada alone imported about $1.3 billion in U.S. dog and cat food for retail sale in 2024, according to USDA ERS. (ers.usda.gov)
Why it matters: Veterinary teams don’t manage trade policy, but they do feel its downstream effects. If manufacturers face higher input costs, tariff exposure, or softer export economics, clinics and hospitals could see more pricing pressure, periodic product substitutions, or tighter availability in some nutrition lines. That’s especially relevant for practices that rely on consistent access to therapeutic diets, specialized formulations, or client-friendly price points for pet parents already managing higher care costs. This is an inference based on the trade data and industry advocacy activity, rather than a direct finding from the federal reports. (bea.gov)
There’s also a strategic angle for veterinary professionals advising pet parents. A narrowing U.S. surplus in dog and cat food may push more manufacturers to rethink sourcing, export priorities, or product mix. That can create ripple effects in formulation decisions, distribution strategy, and the economics of premium versus value diets, all of which can shape what clinics stock and recommend. (petfoodprocessing.net)
What to watch: The next key signals will be whether 2026 trade data show a rebound in the pet food surplus, whether tariff disputes widen or ease, and whether industry lobbying translates into lower trade barriers for U.S. pet food exports. For veterinary businesses, the practical question is whether this remains a trade-statistics story, or starts showing up more visibly in product cost, availability, and pet parent purchasing behavior. (americanpetproducts.org)