By Kenneth Rapoza, Reporter/Columnist for Coalition for a Prosperous America
It was no surprise that
the 2025 goods deficit broke another record, the Bureau of
Economic Analysis (BEA) numbers showed recently. The
year-ending goods deficit was $1.24 trillion, up from $1.21 trillion in 2024,
with the monthly deficit for December looking like historic averages, nearly
$100 billion. Nothing seems to stop America's appetite for imports. Record
breaking tariffs yet record breaking imports. Tariffs are meant to curb imports
and entice extra capacity and investment at home. At first glance, that does
not look like the case at all, setting the narrative for the anti-tariff crowd
that the America First trade agenda has failed. The trillion dollar-plus
deficit can hurt Trump's messaging on tariffs. There is a twist to all
of this. If not for tariff front running
in the first quarter, we would not have beaten last year’s record. [more...]
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