Donald Trump · U.S. · Fortune Technology
Trump’s tariffs were meant to shrink the trade deficit—but the $106 billion gap just reached its widest since before
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During President Donald Trump’s announcement of “Liberation Day” in April 2025, which would bring with it a raft of aggressive tariffs, Trump claimed the import taxes would slash the U.S.’s stubborn trade deficit, or when a country buys more goods from overseas than it sells.
Key facts
- The trade deficit grew by 13.7% to $105.6 billion from July to August, according to the Bureau of Economic Analysis, the highest it’s been since March 2025’s $140 billion
- For example, tariffs on China spiked at 145% following Liberation Day, but have since fallen to around 30% following the Supreme Court ruling against tariffs imposed under the International Emergency
- During President Donald Trump’s announcement of “Liberation Day” in April 2025, which would bring with it a raft of aggressive tariffs, Trump claimed the import taxes would slash the U.S.’s stubborn
- But 17 months later, the administration’s import taxes haven’t closed that deficit at all
Summary
“They’re a national emergency that threatens our security and our way of life,” he said at the time. But 17 months later, the administration’s import taxes haven’t closed that deficit at all. The trade deficit grew by 13.7% to $105.6 billion from July to August, according to the Bureau of Economic Analysis, the highest it’s been since March 2025’s $140 billion. Experts suggest the growing deficit is largely a result of the AI boom, which has created a mass demand in the U.S. for overseas hardware, spiking imports.