US trade deficit continued to widen in December after hitting the smallest monthly amount since the 2009 low in October.

Investing.com-- U.S. President Donald Trump said on Wednesday that the country’s trade deficit had contracted sharply due to his trade tariffs, and that the U.S. was set for a trade surplus in 2026– its first in decades.

US President invokes Section 122 to impose 150-day import surcharge from February 24, citing a widening balance-of-payments deficit after Supreme Court strikes down reciprocal tariffs

The actual trade deficit is not only higher than the projected figure, but it also exceeds the previous trade balance of $-53.00 billion. This suggests a growing trend of importing more goods and services than are being exported, a situation that typically weighs on the US dollar.

Politicians claim that trade deficits are due to the lack of trade barriers. However, as Ludwig von Mises explained, one cannot separate trade and sound money,

Despite the DOJ’s argument before the Court of Appeals, Section 122 covers trade deficits; to rule otherwise would risk an expansion of the IEEPA that Congress did not intend. A U.S. flag is displayed near the U.S. Capitol building, in Washington, D.C ...

President Trump is adhering to economic theory with regard to his tariff policies and trade deficits; with time it will pay off. He understands that America’s perennial trade deficits predispose to our budget deficits, which merely increases America’s ...

U.S. Trade Representative Jamieson Greer talks about potential alternative tariff strategies and revenue refunds on ‘Special Report.’