Trump’s tariffs were meant to shrink the trade deficit— but the $106 billion gap just reached its widest since before ‘Liberation Day’
Source: Fortune ·
The Trump administration has called the trade deficit a “national emergency,” but economists say it’s actually a sign of a resilient American economy.
From the source
During President Donald Trump’s announcement of “Liberation Day” in April 2025, which would bring with it a raft of aggressive tariffs, Trump claimed the import taxes would slash the U.S.’s stubborn trade deficit, or when a country buys more goods from overseas than sells. “They’re a national emergency that threatens our security and our very way of life,” he said at the time. “It’s a very great threat to our country.” But 17 months later, the administration’s import taxes haven’t closed that deficit at all. In fact, the trade deficit is now the largest it’s been since Trump implemented tariffs, and economists are pouring cold water on the very idea that a widening trade gap is even a threat. The trade deficit grew by 13.7% to $105.6 billion from July to August, according to the Bureau of Economic Analysis, the highest it’s been since March 2025’s $140 billion. While imports increased by 4.3% to $420.8 billion, exports increased, but at a slower rate, growing 2.2% to $205.7 billion.…