Meanwhile, the United States’ merchandise trade deficit hit $891 billion in 2018. There is simply no necessary connection between the size of the trade deficit and the general level of prosperity. It could help reduce but cannot seriously dent what is now a $419.2 billion merchandise trade deficit with that country. With November 2020 just around the corner, Mr. Trump’s threat to blow up NAFTA looks more and more like a threat to blow up his own reelection — i.e., a bluff. Cooler heads on Mr. Trump’s trade team, if any, should counsel patience.

Source: Washington Post March 10, 2019 22:18 UTC