Understanding Trade Deficits and Their Impacts

Whatever you think of President Trump's tariffs, there's one point you have to concede: his interest in them is not a passing whim.

He noted that on Wednesday, in the Rose Garden, when he was announcing the latest, massive round of tariffs. "I've been talking about this for 40 years," he said.

The use of tariffs are a core belief for Donald Trump. Trade deficits are bad, other countries take advantage of the U.S. and tariffs are the way to fix this.

Since the Rose Garden announcement, markets have plunged, other countries have promised to retaliate, and members of his own party have spoken out against the tariffs.

Trump's tariff plan is designed to eliminate U.S. trade deficits. Are trade deficits actually bad?

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