https://amgreatness.com/2025/04/28/trump-tariffs-trade-and-a-taboo/
After only a hundred days, the Trump counterrevolution has made quite miraculous progress on the border, illegal immigration, cost-cutting, curbing the DEI/woke revolution, and a historic Ukrainian War settlement.
The pushback to this multifront effort from the left has been formidable, if not hysterical. The greatest fury mostly centers around Trump’s efforts to force U.S. trading partners to adopt either reciprocal or no tariffs while obeying international trading norms—an effort aimed at vastly reducing the U.S. trade deficit.
If Trump could cut a proverbial deal in the next 100 days that, say, cut the annual $1.2 trillion trade deficit in half, coupled with multitrillion-dollar foreign investments, then stocks and bonds would settle down.
Wall Street would go back to its traditional platitudes that the trade deficit then would be no higher than the 3-percent-of-GDP red line.
Stocks would then soar in anticipation of the other news of a continuation of tax cuts, more budgetary reductions, robust energy development, and further deregulation.
The U.S. has run a half-century of trade deficits. And now the red ink has climbed to nearly $1.2 trillion, the largest in history. Yet for all practical purposes, only a few entities account for most of an astronomical sum. And they all have corollary concerns to the U.S. that make their surpluses part of larger problems.
The administration can accurately talk about “70 nations wanting to deal.” But, in truth, if Trump were to settle with just China, Mexico, Canada, the EU, and the ten-nation Southeast Asian trading bloc (ASEAN), then the so-called trade wars would be over.
Start with our North American partners Mexico ($171.9 trillion surplus) and Canada ($63 trillion surplus) that alone account for over 20 percent of the U.S. trade deficit.
Canada’s surplus is almost entirely attributable to its vast oil and gas sales to the U.S. Almost all its daily oil exports go to the U.S., some four million barrels—as well as half its natural gas shipments.