The Family Firm Blog

Trade Deficit Increased in 2017

The trade deficit rose quite significantly during the first year of the Trump administration. This despite the campaign's focus on this issue (regardless of its true economic importance).

Recently we have seen signs that the administration is turning its focus to this issue on several fronts.

Today's news is that there will be more of a concerted effort to talk the value of the dollar down. (thus making exports cheaper and imports more expensive).

The dollar which had already been fairly weak over the past six months had another sizable drop today to the lowest levels since early 2015.

Of course as we've seen over these past months, equity investors don't mind this at all. And not just US stocks. For instance emerging market stocks rose today for the 9th straight day.

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