{"id":2512540,"date":"2025-11-19T18:57:56","date_gmt":"2025-11-19T23:57:56","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/economists-predict-gdp-tailwind-as-us-trade-deficit-falls-significantly\/"},"modified":"2025-11-19T19:00:17","modified_gmt":"2025-11-20T00:00:17","slug":"economists-predict-gdp-tailwind-as-us-trade-deficit-falls-significantly","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/economists-predict-gdp-tailwind-as-us-trade-deficit-falls-significantly\/","title":{"rendered":"Economists Predict GDP &#8216;Tailwind&#8217; as US Trade Deficit Falls Significantly"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Feconomists-predict-gdp-tailwind-as-us-trade-deficit-falls-significantly%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2512540&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>In August 2025, the U.S. trade deficit decreased by nearly 24 percent, falling too $59.6 billion from $78.2 billion in July, mainly due to a meaningful drop in imports influenced by President Donald Trump&#8217;s global tariffs. Imports declined by 5 percent as companies reduced stockpiling ahead of new taxes on various foreign products, which took effect on August 7. Meanwhile, U.S. exports showed a slight increase of 0.1 percent. Despite the monthly drop,the trade deficit for the year through August rose by 25 percent compared to the same period in 2024.<\/p>\n<p>Economists note that the reduced trade deficit positively impacts U.S. economic growth and GDP as less spending on foreign goods favors domestic production. however, Trump&#8217;s tariffs, intended to protect American industries and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/morris-hunter-biden-advised-dad-to-have-empathy-at-climate-summit-where-super-polluter-china-signed-face-saving-agreement-with-america\/\" title=\"Morris: Hunter Biden Advised Dad to Have \u2018Empathy&#039; at Climate Summit \u2014 Where Super-Polluter China Signed Face-Saving Agreement with America\">bring manufacturing back<\/a> to the U.S., have also contributed to sustained inflation above the Federal Reserve&#8217;s target, as importers often pass the higher costs to consumers.<\/p>\n<p>Following public dissatisfaction with rising living costs and recent elections, Trump removed tariffs on several consumer goods such as beef, coffee, and fruits. Additionally, the tariffs face legal challenges, with the Supreme Court expressing doubts about the president&#8217;s authority to impose unlimited tariffs via a national emergency declaration.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<section> \t\t\t\t<script>console.log(\"ad slot (AC1)\")<\/script><script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><script>console.log(\"ad slot (IC3)\")<\/script><\/p>\n<p>WASHINGTON (AP) &mdash; The U.S. trade deficit fell by nearly 24 percent in August as President Donald Trump&rsquo;s <a href=\"https:\/\/amzn.to\/3YuVZYV\" >sweeping global tariffs pushed imports lower<\/a>.<\/p>\n<p>In a report delayed for more than seven weeks by the federal government shutdown, the Commerce Department <a href=\"https:\/\/www.bea.gov\/news\/2025\/us-international-trade-goods-and-services-august-2025\">said<\/a> Wednesday that the the gap between what the United States buys from other countries and what it sells them fell to $59.6 billion in August, from $78.2 billion in July.<\/p>\n<p><a href=\"https:\/\/www.westernjournal.com\/trump-tariffs-bring-new-record-amount-revenue\/\" target=\"_blank\" rel=\"noopener\">Imports<\/a> of goods and services dropped 5 percent to $340.4 billion in August from July, when U.S. companies were stocking up on foreign products before Trump finalized taxes on products from almost every country on earth. Those levies went into effect Aug. 7.<\/p>\n<p>U.S. exports blipped up 0.1 percent in August to $280.8 billion.<\/p>\n<p>Trump, charging that America&rsquo;s persistent trade deficits mean that other countries have taken advantage of the U.S., has overturned decades of U.S. policy in favor of free <a href=\"https:\/\/www.westernjournal.com\/breaking-trump-hits-canada-tariff-hike-hostile-act-demands-misleading-regan-ad-taken\/\" target=\"_blank\" rel=\"noopener\">trade<\/a>, slapping double-digit tariffs on imports from most countries and targeting specific products, including steel, copper, and autos, with their own levies.<\/p>\n<p> <script type=\"text\/javascript\"> \t\t\tif ( getCookie( \"ff_subbed\" ) ) { \t\t\t\tdocument.getElementById(\"stnvideo\").remove() \t\t\t} else { \t\t\t\tdocument.addEventListener(\"DOMContentLoaded\", function() { \t\t\t\t\tfunction loadScript(src) { \t\t\t\t\t\tconst script=document.createElement(\"script\"); \t\t\t\t\t\tscript.src=src; \t\t\t\t\t\tscript.async=true; \t\t\t\t\t\tdocument.body.appendChild(script); \t\t\t\t\t} \t\t\t\t\tfunction findPreviousParagraph(selector, x) { \t\t\t\t\t\tconst targetElement=document.querySelector(selector); \t\t\t\t\t\tif (!targetElement) { \t\t\t\t\t\t\tconsole.warn(\"Target element not found.\"); \t\t\t\t\t\t\treturn null; \t\t\t\t\t\t}  \t\t\t\t\t\t\/\/ Get all <\/p>\n<p> elements in order as they appear in the document \t\t\t\t\t\tlet paragraphs=Array.from(document.querySelectorAll(\"p\"));  \t\t\t\t\t\t\/\/ Find the index of the last <\/p>\n<p> before the target element \t\t\t\t\t\tlet targetIndex=paragraphs.findIndex(p=> p.compareDocumentPosition(targetElement) & Node.DOCUMENT_POSITION_PRECEDING);  \t\t\t\t\t\tif (targetIndex===-1 || targetIndex <x) { \t\t\t\t\t\t\tconsole.warn(\"Not enough paragraphs before the target element.\"); \t\t\t\t\t\t\treturn null; \t\t\t\t\t\t}  \t\t\t\t\t\treturn paragraphs[targetIndex - x]; \t\t\t\t\t}  \t\t\t\t\t\/\/ Set up IntersectionObserver \t\t\t\t\tfunction observeElement(element) { \t\t\t\t\t\tif (!element) return;  \t\t\t\t\t\tconst observer=new IntersectionObserver( \t\t\t\t\t\t\t(entries)=> { \t\t\t\t\t\t\t\tentries.forEach(entry=> { \t\t\t\t\t\t\t\t\tif (entry.isIntersecting) { \t\t\t\t\t\t\t\t\t\tconsole.log(\"Paragraph is now visible:\", entry.target.textContent.trim()); \t\t\t\t\t\t\t\t\t\tloadScript(\"https:\/\/embed.sendtonews.com\/player3\/embedcode.js?fk=s28Az7AY\"); \t\t\t\t\t\t\t\t\t\tobserver.disconnect(); \t\t\t\t\t\t\t\t\t} \t\t\t\t\t\t\t\t}); \t\t\t\t\t\t\t}, \t\t\t\t\t\t\t{ threshold: 0.5 } \/\/ Adjust threshold as needed \t\t\t\t\t\t);  \t\t\t\t\t\tobserver.observe(element); \t\t\t\t\t}  \t\t\t\t\t\/\/ Find the 1st paragraph before #stnvideo and observe it \t\t\t\t\tlet paragraphToObserve=findPreviousParagraph(\"#stnvideo\", 2); \t\t\t\t\tobserveElement(paragraphToObserve); \t\t\t\t}); \t\t\t} \t\t<\/script> <\/p>\n<p>Still, the U.S. trade deficit is up so far in 2025, coming in at $713.6 billion through August, up 25 percent from $571.1 billion in January through August 2024.<\/p>\n<p>A drop in imports and the trade deficit is good for economic growth because foreign products are subtracted from the nation&rsquo;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/its-official-trump-crushes-record-for-largest-gdp-increase-in-us-history-3rd-quarter-gdp-up-33-1\/\" title=\"IT&#039;S OFFICIAL: Trump Crushes Record for Largest ... Increase in US History -- 3rd Quarter ... Up 33.1%\">gross domestic product<\/a>. GDP is economic output in terms of a nation&rsquo;s goods and services.<\/p>\n<p>&ldquo;August&rsquo;s smaller trade deficit will be a tailwind for third quarter real GDP, since it means that more U.S. expenditures were directed toward domestically-produced goods and services rather than foreign ones,&rdquo; Bill Adams, chief economist at Comerica Bank, wrote in a commentary. &ldquo;While this release is quite dated because of the government shutdown, it contributes to evidence that the economy was growing briskly in the third quarter.&rdquo;<\/p>\n<p>Tariffs, which Trump says will protect U.S. industries and lure factories to America, are paid by importers who typically attempt to pass along the higher cost to their customers. Economists say Trump&rsquo;s tariffs are one reason U.S. inflation remains above the Federal Reserve&rsquo;s 2 percent target.<\/p>\n<p>After voters&rsquo; dissatisfaction with the high cost of living led to big Democratic gains in the Nov. 4 elections, the president relented and dropped tariffs last week on beef, coffee, tea, fruit juice, cocoa, spices, bananas, oranges, tomatoes, and certain fertilizers, saying they &ldquo;may, in some cases&rdquo; have contributed to higher prices.<\/p>\n<p>His tariffs are also facing a legal challenge that has gone to the Supreme Court. In a Nov. 5 hearing, the justices sounded skeptical that the president had the authority to bypass Congress and slap unlimited <a href=\"https:\/\/www.westernjournal.com\/scalise-right-no-2000-tariff-rebate-checks-pay-debt-instead\/\" target=\"_blank\" rel=\"noopener\">tariffs<\/a> on most imports simply by declaring a national emergency.<\/p>\n<p>____<\/p>\n<p><em>AP Writer Josh Boak contributed to this report.<\/em><\/p>\n<p style=\"font-style: italic;\">The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.<\/p>\n<div style=\"position: relative;\">\n<div class=\"ff-fancy-header-container\"> \t\t\t \t<\/div>\n<div class=\"entry-submit-correction inner-content\">\n<div class=\"correction-form\">\n<form style=\"display: none;\">\n<div class=\"sc-name-field\"> \t\t\t\t\t\t<label>* Name<\/label> \t\t\t\t\t\t<br \/> \t\t\t\t\t\t<input type=\"text\" name=\"name\" required> \t\t\t\t\t<\/div>\n<div class=\"sc--field\"> \t\t\t\t\t\t<label>* <\/label> \t\t\t\t\t\t<br \/> \t\t\t\t\t\t<input type=\"text\" name=\"\" required> \t\t\t\t\t<\/div>\n<p> \t\t\t\t\t<label>* Message<\/label> \t\t\t\t\t<br \/> \t\t\t\t\t<textarea name=\"message\" required><\/textarea> \t\t\t\t\t \t\t\t\t\t<\/p>\n<div class=\"required-message\" style=\"display: none; padding-bottom: 15px;\">* All fields are required.<\/div>\n<p> \t\t\t\t\t<input type=\"submit\" value=\"Submit\" onclick=\"event.preventDefault(); firefly_sc();\"> \t\t\t\t\t \t\t\t\t\t<\/p>\n<div class=\"firefly-sc-confirm\" style=\"display: none;\">Success!<\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<p> \t\t<script> \t\t\tfunction firefly_sc() { \t\t\t\tif( typeof window.captchaPublicKey==typeof undefined ){ \t\t\t\t\tconsole.error('window.captchaPublicKey is not defined'); \t\t\t\t} \t\t\t\tgrecaptcha.execute( window.captchaPublicKey, { action: 'submit_correction' } ).then( function( token ) { \t\t\t\t\tvar opts={ \t\t\t\t\t\taction:    'firefly_sc_submit', \t\t\t\t\t\tname:      document.querySelector( '.entry-submit-correction [name=\"name\"]' ).value, \t\t\t\t\t\t:     document.querySelector( '.entry-submit-correction [name=\"\"]' ).value, \t\t\t\t\t\tmessage:   document.querySelector( '.entry-submit-correction [name=\"message\"]' ).value, \t\t\t\t\t\tpost_id:   firefly_post_id, \t\t\t\t\t\tcap_token: token \t\t\t\t\t}  \t\t\t\t\tvar inputs=[ 'name', '', 'message' ];  \t\t\t\t\tfor( var i=0; i <inputs.length; i++ ) if( ! ( opts[inputs[i]]=document.querySelector( '.entry-submit-correction [name=\"' + inputs[i] + '\"]' ).value ) ) { \t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .required-message' ).style.display='block'; \t\t\t\t\t\treturn; \t\t\t\t\t}  \t\t\t\t\tdocument.querySelector( '.entry-submit-correction input[type=\"submit\"]' ).style.display='none'; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).src=firefly_loading_gif_url; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='inline-block';  \t\t\t\t\tconsole.log( 'ma subbing' );  \t\t\t\t\tif( firefly_post_id ) opts['post_id']=firefly_post_id;  \t\t\t\t\t\/* Send the data using post with element id name and name2*\/ \t\t\t\t\tvar posting=jQuery.post( firefly_ajax_url, opts );  \t\t\t\t\t\/* Alerts the results *\/ \t\t\t\t\tposting.done( function( response ) { \t\t\t\t\t\tif( response.success ) { \t\t\t\t\t\t\tconsole.log( response.data ); \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='none'; \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-confirm' ).style.display='block';  \t\t\t\t\t\t\tdataLayer.push( { 'event': 'submit-correction' } ); \t\t\t\t\t\t} \t\t\t\t\t}); \t\t\t\t}); \t\t\t} \t\t<\/script> \t     \t\t\t\t\t\t     \t\t\t\t\t<\/div>\n<p style=\"border: 1px solid #f5f5f5; padding: 16px;\">Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. <a href=\"https:\/\/www.westernjournal.com\/advertise-us\/?wj_source=article\">Advertise Today<\/a>.<\/p>\n<p><script>console.log(\"ad slot (BA1)\")<\/script> \t\t<\/p>\n<div class=\"ff-fancy-header-container\"> \t\t\t \t<\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WASHINGTON (AP) &#8211; In August, the U.S. trade deficit decreased by almost 24 percent, largely due to President Donald Trump&#8217;s broad global tariffs reducing imports. The Commerce Department reported on Wednesday-after a delay of over seven weeks caused by the federal government shutdown-that the difference between U.S. imports and exports dropped to $59.6 billion in August from $78.2 billion in July. Imports of goods and services fell 5 percent to $340.4 billion as companies had stocked up on foreign products before tariffs took effect on August 7th. Meanwhile, U.S. exports slightly increased by 0.1 percent to $280.8 billion.<\/p>\n<p>Trump has argued that ongoing trade deficits indicate other countries have exploited the U.S., prompting him to reverse decades of free-trade policies by imposing significant tariffs on most imports, including targeted levies on steel, copper, and automobiles.<\/p>\n<p>Despite this monthly improvement, the overall trade deficit for 2025 through August rose 25 percent compared to the same period last year, reaching $713.6 billion versus $571.1 billion in January-August 2024.<\/p>\n<p>A reduction in imports and a smaller trade deficit can boost economic growth since foreign goods are subtracted from GDP calculations-the total value of domestic goods and services produced.<\/p>\n<p>Bill Adams, chief economist at Comerica Bank, noted that August&#8217;s reduced deficit should support third-quarter GDP growth because more spending was directed toward American-made products rather than foreign ones.<\/p>\n<p>While Trump claims tariffs protect domestic industries and encourage manufacturing within the U.S., economists say these taxes contribute to inflation remaining above the Federal Reserve&#8217;s target rate of 2%, as importers often pass higher costs onto consumers.<\/p>\n<p>Following voter dissatisfaction over rising living costs reflected in Democratic gains during November elections, Trump recently lifted tariffs on several items such as beef, coffee, tea, fruit juices, cocoa products, spices, bananas, oranges, tomatoes-and some fertilizers-acknowledging they may have contributed to price increases.<\/p>\n<p>Additionally,the president&#8217;s tariff authority is under legal scrutiny; during a Supreme Court hearing on November 5th justices expressed doubts about his power to impose unlimited tariffs without Congressional approval simply by declaring a national emergency.<\/p>\n<p>(AP Writer Josh Boak contributed.)<\/p>\n","protected":false},"author":1,"featured_media":2512541,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2025\/11\/4019db7e8a504cb489c59636782800a2-scaled.jpg","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[45362,13123,19583,67381,67380],"class_list":["post-2512540","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-economic-forecast","tag-economics","tag-gdp","tag-trade-balance","tag-us-trade-deficit"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2025\/11\/4019db7e8a504cb489c59636782800a2-scaled.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2512540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2512540"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2512540\/revisions"}],"predecessor-version":[{"id":2512544,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2512540\/revisions\/2512544"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2512541"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2512540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2512540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2512540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}