While headlines focus on the geopolitical tension in the Middle East, a significant economic shift is occurring that is receiving little attention: the trade deficit. In the most recent report from the U.S. Bureau of Economic Analysis and the U.S. Census Bureau, the deficit decreased from $138.3 billion in March (revised) to $61.6 billion in April, as exports increased and imports decreased. That is a seismic shift, and if it continues, it holds immense economic repercussions.
Much jargon has surfaced in 2025 from the administration regarding tariffs, but the overall rate has settled to about 10% on a global basis. What’s remarkable is that this 10% rate resulted in a 56% decline in the trade deficit. That’s truly astounding and makes me wonder if the US may someday operate with a trade surplus. Imagine the long-term benefits of the US selling more goods abroad than it imports and keeping that revenue “in country.” Clearly, the administration has parroted this stance since inauguration, but the data is showing that it may be occurring and be permanent. Stay tuned to the trade deficit.
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