Understanding Trade Deficits and Their Impact on Markets

Learn what a trade deficit is, how it affects economies and markets, and why it might not always signal a weak economy.
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Ending the U.S. trade deficit with tariffs is impossible, and it risks eliminating two longstanding U.S. surpluses

The Trump administration has chosen the elimination of the U.S. trade deficit as its chief economic policy objective. This is misguided. In almost all cases, the magnitude of a country’s trade deficit ...
Newsday

FACT FOCUS: Trump blames Biden for the agricultural trade deficit. It's not that simple

As President Donald Trump announced a $12 billion farm aid package this week to help U.S. farmers hurt by tariffs, he placed responsibility for the U.S. agricultural trade deficit on former President ...
Cfr.org

Better Late Than Never: The IMF Starts to Recognizes Balance of Payments Reality

The IMF’s “message” is that the widening of the U.S. deficit and the Chinese surplus over the course of 2024 was unwelcome—it took both countries away from their estimated current account balances (in ...

Trump’s tariffs reduced China’s surplus with US — and made it the world’s headache

China's trade surplus hit a record $1.2 trillion in 2025. Trump had always prefaced his tariffs by pointing to China's trade ...