Can tariffs reduce U.S. trade deficit?

The U.S. trade deficit grew in recent years, largely due to
a strong dollar which allowed U.S. to buy more foreign goods,
while struggling foreign trade partners were unable to reciprocate

U.S. TRADE BALANCE (monthly, $billions) (D) Democrat (R) Republican

0
-20
-40
-60
-80
-100
-120

1995 2000 2005 2010 2015 2020

CLINTON (D)
G. W. BUSH (R)
OBAMA (D)
TRUMP (R)
BIDEN (D)

JAN 1992
-2.0bn

DEC 2024
-98.4bn

Deficit begins
to grow during
Trump’s first
term...

...but really
takes off during
Joe Biden’s presidency

Mar 4: Trump declares “the American dream is unstoppable”, but admits
Americans could be in for bumpy ride ahead after slapping high tariffs on
goods imported from Canada, Mexico and China

Sources: BBC, Bloomberg, Bureau of Economic Analysis Picture: Getty Images
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