President Donald Trump on Wednesday touted what he described as a dramatic turnaround in America’s trade imbalance, declaring that the U.S. trade deficit has fallen by 78 percent as a direct result of his tariff policies.
“THE UNITED STATES TRADE DEFICIT HAS BEEN REDUCED BY 78% BECAUSE OF THE TARIFFS BEING CHARGED TO OTHER COMPANIES AND COUNTRIES,” Trump wrote in a post on his Truth Social platform.
The president went even further, predicting a historic milestone. “IT WILL GO INTO POSITIVE TERRITORY DURING THIS YEAR, FOR THE FIRST TIME IN MANY DECADES. THANK YOU FOR YOUR ATTENTION TO THIS MATTER!” he added.
The remarks underscore Trump’s continued defense of tariffs as a cornerstone of his economic agenda during his second term. While his trade strategy has drawn sharp reactions both at home and abroad, the president has consistently argued that levying import taxes strengthens American industry and rebalances trade relationships he has long described as unfair.
Still, the policy has rattled markets around the globe, increased economic uncertainty and strained ties with longtime U.S. allies such as Canada and the European Union. The global response has reflected the far-reaching implications of Trump’s aggressive trade posture.
At home, the president has also faced anxieties about the economy from the American public as the country approaches the 2026 midterm elections. Economic performance and cost-of-living concerns are expected to loom large in the political debate heading into that cycle.
The tensions spilled into Congress last week, when six House Republicans joined Democrats to pass a resolution aimed at rolling back Trump’s tariffs on Canada. The 219-211 vote marked a notable setback for the president and Republican House leadership, highlighting divisions within the GOP over trade policy.
The vote came amid a broader House Republican revolt against leadership, driven in part by frustration over how the administration has handled trade issues. The rare public split illustrated the political complexity surrounding tariffs, even within the president’s own party.
Adding to the debate, Trump’s lead White House economic adviser recently suggested that a group of Federal Reserve researchers should face punishment over a paper analyzing the impact of the president’s import taxes. National Economic Council Director Kevin Hassett, in a recent interview, criticized a study produced by economists at the Federal Reserve Bank of New York.
According to those economists, consumers paid for 90 percent of the costs associated with Trump’s tariffs. The findings have fueled arguments from critics who contend that import taxes ultimately raise prices for American buyers.
Despite the pushback from some Republicans, Federal Reserve researchers and international partners, Trump continues to frame tariffs as a tool that is delivering measurable results. His claim that the trade deficit has been reduced by 78 percent is now central to that argument, as he signals confidence that the United States could move into positive territory for the first time in decades.
With markets watching closely, lawmakers divided, and voters weighing economic concerns ahead of the midterms, the debate over tariffs shows no signs of slowing down. For Trump, however, the message remains clear: tariffs, he insists, are working.
