Trump hypes 67% trade deficit cut as historic win but it is cherry-picked monthly drop with almost no annual change

Trump said biggest trade deficit cut in history at 67 percent because of tariffs.
This comes from monthly goods and services deficit.
It fell from about 133 billion dollars peak in March 2025 to around 56 billion dollars in recent month.
That is roughly 58 percent drop in those selected months.
Annual 2025 full year deficit was 901.5 billion dollars.
It decreased only 2.1 billion or 0.2 percent from 903.5 billion in 2024 per BEA data.
Goods deficit actually increased 25.5 billion while services surplus grew.
Bigger percentage monthly drops happened in past recessions and other years.
Tariffs brought some factory announcements but trade balance mainly from US savings investment gap and demand.

 

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