U.S. trade deficit shrinks in 2019 – but does it matter?

The annual U.S. trade deficit declined for the first time in six years as Washington’s trade dispute with China reduced the number of imports.

Can Tariff Man claim victory?

According to the Bureau of Economic Analysis (BEA), the trade deficit rose to $48.9 billion in December, higher than the market estimate of $48.2 billion. But it was the overall performance last year that would make the White House celebrate.

The trade gap fell for the first time since 2013, sliding 1.7% to $617 billion. But it may not be much of a victory parade since the trade deficit reached a record high of $628 billion in 2018.

But should we be popping open the champagne or losing sleep at night?

Not according to legendary economist Murray Rothbard.

Check this video out (we have shared this before):