, Columnist
Why the U.S. Trade Deficit Keeps Growing
Trump’s fiscal policy is undermining his trade agenda.
The flip side of foreign investment.
Photographer: Johannes Eisele/AFP/Getty ImagesThis article is for subscribers only.
Ever since U.S. President Donald Trump came to power, his administration has focused on shrinking the trade deficit, pressuring foreign countries to reduce barriers to American exports. Yet the government recently reported that the deficit rose significantly in 2018, to $621 billion.
What gives? Shouldn’t Trump’s efforts in China and elsewhere have some effect on trade with those countries, and hence on the overall U.S. trade imbalance? Unfortunately, that’s not how it works.