Meathead
Diamond Member
I get that some will find this a complete disaster since it's happening under Trump, but those not suffering from acute TDS will agree that this is good news indeed:
The U.S. has lived with a massive trade deficit for decades. But under President Donald Trump’s sweeping tariffs, that gap is suddenly narrowing — and much faster than many expected.
That became clear on CNBC when anchor Rick Santelli reacted in real time to the latest numbers.
“On the trade balance, which we know is going to be a deficit, we’re expecting a number around $58 billion,” Santelli said on Thursday morning (1). As he read through the Commerce Department’s update, his tone shifted. “Buckle up, this is unreal! The movement in this number: -$29.4 billion — we cut it basically in half! We cut it in half!”
October’s $29.4 billion trade deficit didn’t just come in well below economists’ forecasts — it marked a 39% drop from September’s $48.1 billion gap (2).
Santelli also underscored how dramatic the swing has been compared to earlier this year, before Trump’s tariffs took effect.
“Just consider this: In March it was $136 billion. Right now, it’s a whisker under $30 billion. We haven't been that small in a long time — I don't have enough records here to go back that far!” he said.
As it turns out, it’s the smallest trade deficit since June 2009.
Tariffs are designed to discourage imports and reshape trade flows, so the trend isn’t entirely unexpected. As Santelli noted, “Here’s the news on why it moved lower: Imports were down and exports were up.”
The U.S. has lived with a massive trade deficit for decades. But under President Donald Trump’s sweeping tariffs, that gap is suddenly narrowing — and much faster than many expected.
That became clear on CNBC when anchor Rick Santelli reacted in real time to the latest numbers.
“On the trade balance, which we know is going to be a deficit, we’re expecting a number around $58 billion,” Santelli said on Thursday morning (1). As he read through the Commerce Department’s update, his tone shifted. “Buckle up, this is unreal! The movement in this number: -$29.4 billion — we cut it basically in half! We cut it in half!”
October’s $29.4 billion trade deficit didn’t just come in well below economists’ forecasts — it marked a 39% drop from September’s $48.1 billion gap (2).
Santelli also underscored how dramatic the swing has been compared to earlier this year, before Trump’s tariffs took effect.
“Just consider this: In March it was $136 billion. Right now, it’s a whisker under $30 billion. We haven't been that small in a long time — I don't have enough records here to go back that far!” he said.
As it turns out, it’s the smallest trade deficit since June 2009.
Tariffs are designed to discourage imports and reshape trade flows, so the trend isn’t entirely unexpected. As Santelli noted, “Here’s the news on why it moved lower: Imports were down and exports were up.”
