President Trump on Wednesday claimed that the U.S. trade deficit has fallen by 78 percent because of tariffs.
“THE UNITED STATES TRADE DEFICIT HAS BEEN REDUCED BY 78% BECAUSE OF THE TARIFFS BEING CHARGED TO OTHER COMPANIES AND COUNTRIES,” the president said in a post on his Truth Social platform.
“IT WILL GO INTO POSITIVE TERRITORY DURING THIS YEAR, FOR THE FIRST TIME IN MANY DECADES. THANK YOU FOR YOUR ATTENTION TO THIS MATTER!” he added.
During his second term, Trump’s tariff policy has rattled markets around the globe, increased economic uncertainty and strained relationships with historic U.S. allies like Canada and the European Union.
Trump has also been dealing with anxieties about the economy from the American public as the country approaches the 2026 midterms.
Last week, six House Republicans came together with Democrats to pass a resolution to roll back Trump’s tariffs on Canada. The move by the six Republicans marked a notable defeat for Trump and Republican House leadership.
The vote, 219-211, came in the wake of a House GOP revolt against leadership due to the administration’s handling of trade policy.
Trump’s lead White House economic adviser also recently suggested that a group of Federal Reserve researchers should face punishment over a paper looking into the costs of the president’s tariffs.
National Economic Council Director Kevin Hassett, in a recent interview, criticized a new paper from the Federal Reserve Bank of New York economists. According to the economists, consumers paid for 90 percent of the costs of Trump’s import taxes.
