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US trade deficit hits record that will be a Trump target

1. America's trade deficit reached a record $1.2 trillion in 2024. 2. Imports peaked at $364.9 billion in December 2024. 3. Trump aims to close the deficit through tariffs on trading partners. 4. Significant deficits exist with China, Mexico, and Canada, targeted for tariffs. 5. Suspension of Canadian and Mexican tariffs aligns with protectionist trade policies.

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FAQ

Why Bearish?

Increased trade deficits and tariffs may negatively affect economic growth, impacting S&P 500 valuations.

How important is it?

Trade policy shifts directly influence market conditions, affecting S&P 500 companies reliant on exports/imports.

Why Long Term?

Sustained trade imbalances can trigger ongoing economic challenges, similar to past tariff disputes.

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