President Donald Trump vowed to end the "massive trade deficit" that grew to record numbers under former President Joe Biden.
The U.S. trade deficit surged in January, Biden's last month as president. Imports rose 10% to $401.2 billion, while exports climbed by 1.2% to $269.8 billion, The Wall Street Journal reported Thursday.
The all-time high trade deficit of $131.4 billion was 34% greater than the $98.1 billion deficit in December. The percentage change in the deficit announced by the Commerce Department's Bureau of Economic Analysis was the largest since March 2015.
"Massive Trade Deficit with the World, just announced, compliments of Sleepy Joe Biden! I will change that!!!" Trump posted Thursday morning on Truth Social.
During his speech to a joint session of Congress on Tuesday night, Trump said Americans will benefit from the tariffs long term.
"Tariffs are about making America rich again and making America great again," he said. "And it's happening. And it will happen rather quickly. There'll be a little disturbance, but we're OK with that. It won't be much."
Trump on Tuesday imposed 25% tariffs on Mexico and Canada and an additional 10% on China. The president has said the tariffs are his way pf pressuring the three countries to do their part in ending the influx of fentanyl into the U.S.
Cartels are transporting drugs manufactured in China across the borders and into the U.S.
Not everyone agrees with Trump about the tariffs' effect on the deficit.
"It is low national saving coupled with robust investment that drives the U.S. external deficit," Maurice Obstfeld, a senior fellow at the Peterson Institute for International Economics, wrote in Financial Times.
"Serious action to curb the federal budget deficit would boost both the trade balance and manufacturing employment. This approach requires plans that reduce borrowing meaningfully while avoiding needless economic damage — not the chainsaw theatrics currently on display."
Many economists have attributed the increase in imports early this year to efforts by U.S. companies to secure products and manufacturing inputs before new tariffs went into effect, the Journal reported.
The Associated Press and Reuters contributed to this story.
Charlie McCarthy ✉
Charlie McCarthy, a writer/editor at Newsmax, has nearly 40 years of experience covering news, sports, and politics.
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