President Trump on Wednesday claimed that the U.S. trade deficit has fallen by 78 percent because of tariffs.<\/p>\n\n\n\n
\u201cTHE UNITED STATES TRADE DEFICIT HAS BEEN REDUCED BY 78% BECAUSE OF THE TARIFFS BEING CHARGED TO OTHER COMPANIES AND COUNTRIES,\u201d the president said in a post on his Truth Social platform.<\/p>\n\n\n\n
\u201cIT WILL GO INTO POSITIVE TERRITORY DURING THIS YEAR, FOR THE FIRST TIME IN MANY DECADES. THANK YOU FOR YOUR ATTENTION TO THIS MATTER!\u201d he added.<\/p>\n\n\n\n
During his second term, Trump\u2019s 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.<\/p>\n\n\n\n
Trump has also been dealing with anxieties about the economy from the American public as the country approaches the 2026 midterms.<\/p>\n\n\n\n
Last week, six House Republicans came together with Democrats to pass a resolution to roll back Trump\u2019s tariffs on Canada. The move by the six Republicans marked a notable defeat for Trump and Republican House leadership.<\/p>\n\n\n\n
The vote, 219-211, came in the wake of a House GOP revolt against leadership due to the administration\u2019s handling of trade policy.<\/p>\n\n\n\n
Trump\u2019s 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\u2019s tariffs.<\/p>\n\n\n\n
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\u2019s import taxes.<\/p>\n\n\n\n