BREAKING
🇺🇸 President Trump says the trade deficit has dropped 78% because of tariffs.
If that number holds, that’s massive. A move like that would signal a sharp shift in import-export balance, supply chain behavior, and domestic production incentives.
But here’s the real market angle 👇
Tariffs don’t just shrink deficits. They reshape capital flows.
They affect dollar strength.
They pressure global trade partners.
They move commodities.
They influence inflation expectations.
If deficit compression is real and sustained, expect reactions in:
• $USDC
strength
• Treasury yields
• Manufacturing stocks
• Commodity markets
• Risk assets like crypto
Trade policy is macro fuel.
Now the key question isn’t the headline.
It’s whether the data confirms it — and how markets price it.