Trump Claims 78% Trade Deficit Reduction Drive S&P 500 ETF Gains
President Trump said reciprocal tariffs on 100+ countries since April 2025 cut the U.S. trade deficit by 78% and forecast a surplus this year. Government data show the deficit rose 95% to $56.8 billion in November and 2025’s 11-month deficit was 4.1% higher, with 90% of tariffs borne domestically.
1. Tariff Policy and Deficit Claim
President Trump posted that tariffs on more than 100 countries since April 2025 cut the U.S. trade deficit by 78% and projected a trade surplus before year-end.
2. Contrasting Official Data
Government figures show the deficit climbed 95% to $56.8 billion in November 2025, keeping the 11-month shortfall 4.1% above the prior year.
3. Toll on Businesses and Consumers
Analysis indicates nearly 90% of tariff costs have been absorbed by U.S. companies and consumers, potentially weighing on domestic spending.
4. Market Impact on S&P 500 ETF
The S&P 500 ETF gained around 0.5% on the day, reflecting investor optimism on trade developments amid broader index gains.