That deficit was a prominent campaign theme for former President Donald Trump in 2016, and a primary reason he
launched a trade war against China after taking office. Trump argued that cutting the trade deficit would create jobs in the U.S. and strengthen the economy.4
Peterson Institute for International Economics. "
Trump’s Trade War Timeline: An Up-to-Date Guide."
A strong trade surplus doesn't necessarily mean strong
economic growth. Japan, for example, has run a significant trade surplus for most of the past several decades, yet its economy has been stuck in low gear most of that time.8
Columbia University, Weatherhead East Asian Institute. “
Economy and Trade Fact Sheet.”
Germany, too, generally runs a strong trade surplus but registers mediocre economic growth.9
In the U.S., some periods of strong economic growth have come at times of a surging trade deficit, as consumers and businesses buy more products and services from abroad, and foreign investors seek to put their money to work in the U.S.