Trump Effect: Trade Deficit Narrows as Trump Tariffs Reshape Global Commerce

The three-month average goods deficit fell to $80.5 billion in the fourth quarter, down 27 percent from $109.6 billion in the same period a year earlier. The combined goods and services deficit dropped even more sharply, falling nearly 40 percent to $50.7 billion from $83.6 billion in the fourth quarter of 2024.
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