Harvard Professor and former IMF First Deputy Managing Director Gita Gopinath has dismissed claims that the U.S. is facing a balance-of-payments (BoP) crisis, arguing that the administration's new 150-day tariffs are an ineffective tool for long-term economic stability.Diagnosis: Cholesterol, Not A Heart Attack“A 150-day tariff cannot reduce persistent trade deficits and the U.S. is not having a heart attack,” Gopinath posted on X, directly challenging the justification for invoking Section 122 of the Trade ...

Group 1 - The U.S. trade deficit in December reached $70.3 billion, an increase of $17.3 billion from November, significantly exceeding the Dow Jones consensus estimate of $55.5 billion [2] - For the entire year, the U.S. recorded a trade deficit of $901.5 billion, a slight decrease of 0.2% or $2.1 billion from 2024, and lower than the record deficit of $923.7 billion in 2022 [2] - The largest goods deficit was with the European Union at $218.8 billion, followed by China at $202.1 billion and Mexico at $196.9 billion [4] Group 2 - President Trump's administration implemented aggressive tariffs, including a 10% duty on all imports, aimed at addressing trade imbalances [3] - Despite initial efforts to front-load imports in anticipation of tariffs, the trend diminished, leading to the lowest monthly deficit since 2009 in October [4] - Ongoing negotiations with major trading partners have led to a softening of some tariff positions throughout the year [3]

U.S. trade deficit might be tariff proof — imports jump to record high in 2025 - MarketWatch## Economic Report# U.S. trade deficit might be tariff proof — imports jump to record high in 2025## U.S. posts third largest trade deficit ever. China is a big loser, Vietnam and Taiwan are winners.Published: Feb. 19, 2026 at 9:15 a.m. ETShareResize---Listen(2 min)High tariffs didn't have much effect on chronic U.S. trade deficits. Photo: Yamil Lage/Agence France-Presse/Getty ImagesHigh tariffs were supposed to slas ...

President Donald Trump claimed on Wednesday that his administration's aggressive tariff policies have sparked a "staggering" 78% reduction in the U.S. trade deficit, vowing the nation will soon achieve its first trade surplus in decades.A Milestone In Trade Policy?In an all-caps post on Truth Social, the President lauded the impact of his global “reciprocal tariffs,” which targeted over 100 countries starting in April 2025.Trump attributed the contraction directly to these duties, stating, "The United State ...

Core Viewpoint - The U.S. trade deficit narrowed more than expected in August, influenced by President Trump's tariffs, which disrupted international commerce [1][2]. Group 1: Trade Deficit Data - The U.S. trade deficit shrank to $59.6 billion in August, the narrowest gap since October 2023 [1]. - This represents a 24% reduction from July's deficit of $78.2 billion, with imports declining by 5.1% and exports rising by only 0.1% [2]. Group 2: Tariff Impact - President Trump expanded tariffs on U.S. trade partners in August, raising the effective tariff rate to 18% [3]. - The tariffs initially announced in April contributed to a widening trade deficit as imports increased prior to the August adjustments [3]. Group 3: Economic Growth Projections - The Federal Reserve of Atlanta projects a 4.2% increase in U.S. GDP for the third quarter, with exports contributing up to 0.78 percentage points [4]. - In the second quarter, GDP increased by 3%, surpassing the Dow Jones consensus of 2.3%, while exports and imports fell by 1.8% and 30.3%, respectively [4].