Trade Deficits Not the Villain, Misguided Tariffs Are

With President Trump back in the White House, tariffs and trade deficits are once again front-page news. His second-term economic agenda seems to hinge on reducing America’s trade deficit—treating it as proof that other nations are taking advantage of us. But that narrative is misleading. A trade deficit is not inherently bad; in fact, it can be a sign of economic strength and global confidence in the U.S. economy.