Surefire Way to Reduce the Trade Deficit: Have a Recession

Trump is desperate to reduce the trade deficit. Perhaps his trade policies will do just that, via global recession.

Trump is desperate to reduce the trade deficit. Perhaps his trade policies will do just that, via global recession.

A prolonged global trade war will add fuel to a nasty global recession.

But look at the bright side. It's a surefire way to reduce imports more than exports.

The bigger the recession, the bigger Trump's alleged "win".

Mike "Mish" Shedlock

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Trump is on an impossible mission. Tariffs will not reduce the trade deficit and will likely make matters worse.

Exports fell 0.1% and imports rose 0.2%. The result was a widening of the trade deficit to $55.5 billion.

The advance trade report broke a string of increasing goods deficits in March, shrinking 10.3%.

Today's trade report will set off hows from trump. Imports up, exports down. Record deficits with China and Mexico.

The trade deficit widened to $-74.4 billion from $-72.3 billion. Economists expected the deficit to shrink slightly.

Trump will not exactly be pleased as the trade deficit in goods is headed the wrong way for his liking.

The US trade deficit widened to $55.5 billion from a negatively revised $51.2 billion. The consensus was $53.5 billion.

Economists expected the trade deficit to widen, but the report was outside the range of any estimate.

It's a never-ending trade deficit story. And the pace is accelerating.