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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Many of the president’s tariffs rest on the legal claim that the gap between what America imports and exports is a national emergency, an idea that remains contentious. By Ana Swanson Ana Swanson ...

It is normal for a country to have deficit with some of its trading partners and surpluses with others. President Donald Trump and members of his administration claim that international trade is rife ...

The trade deficit has narrowed to its smallest since mid-2020, down more than 35% over last year — and more proof that President Donald J. Trump’s America First trade agenda is working. President ...

President Trump is adhering to economic theory with regard to his tariff policies and trade deficits; with time it will pay off. He understands that America’s perennial trade deficits predispose to ...

The U.S. trade deficit with the world will set a record in 2025, which will be the fourth record in Trump’s five years in office, according to my analysis of U.S. Census Bureau data. It will surpass ...

The monthly trade deficit fell to its lowest level in five years after the president’s imposition of sweeping global tariffs. But it’s unclear whether the trend will persist. Note: Data shows goods ...

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This article was originally published by the Council on Foreign Relations on Aug. 1, 2025. One of the hardest jobs of a policymaker is to weigh trade-offs. Few policies are clean, absolute, and ...