National Trade Council Director Peter Navarro commits analytical errors and reinforces fallacies in his March 6 op-ed “Why the White House Worries About Trade Deficits.” Consider Mr. Navarro ...

The contribution of the goods trade deficit to Q1 real GDP dropped to -5.26 percentage points from -4.90 pp in the Atlanta Fed's standard model and to -4.05 pp from -2.85 pp in its alternative ...

Since 2000, every year the trade deficit increased, real U.S. GDP also increased, on average by 2.8 percent. But when the trade deficit decreased, GDP did not boom—in fact, it increased on ...

U.S. GDP grew 2.4% in Q4 2024, slightly above prior estimate but slower than Q3’s 3.1% pace. Goods trade deficit narrowed to $147.9B in February, missing expectations despite strong gains in ...

So, even if the company chooses to invest its earnings directly back into the U.S. economy, we still have a $1,000 trade deficit — and our fair trade friends are upset.

Trade deficits are also counterbalanced by capital account surpluses, meaning foreign countries invest their export earnings (often paid in U.S. dollars) back into the U.S. economy through real ...

GDP up only 1.6%. Trade deficits hurt the economy very badly.” President Trump, as he does about so many economic issues, sees the world as divided into ‘winners’ and ‘losers’, ...

The economic argument that trade deficits matter begins with the observation that growth in real GDP depends on only four factors: consumption, government spending, business investment and net ...

Suppose the United States ran a $100 million trade deficit with Germany, ... (T-bills) or U.S. real estate. So, even though the U.S. GDP would fall by $100 million, the American economy is no ...

What Tariff Hikes Could Mean for GDP Growth. Higher tariffs would unambiguously reduce real GDP. We estimate a 1.6% long-run impact: a 1.1% impact from the 10% uniform hike and a 0.5% impact from ...

The contribution of the goods trade deficit to Q1 real GDP dropped to -5.26 percentage points from -4.90 pp in the Atlanta Fed's standard model and to -4.05 pp from -2.85 pp in its alternative ...