S&P 500 Tumbles as Trade Deficit Widens - Trump Fights to Maintain Tariffs Amid Market Pressure
Markets reel as widening trade gap triggers S&P selloff
Trade Wars Bite Back
The deficit expansion hammered equities as Trump doubles down on tariff defenses—because nothing says economic strategy like taxing your own consumers twice.
Wall Street's protective measures crumble under pressure from overseas imbalances while the administration scrambles to justify protectionist policies that increasingly look like self-inflicted wounds.
Another day, another brilliant fiscal maneuver where everyone loses except the short-sellers.
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During the month, exports grew by $0.8 billion to $280.3 billion, while imports grew by $20 billion to $358.8 billion. On a year-to-date basis, the trade deficit has increased by 30.9% from the same period in 2024. The latest data could pose an issue for third-quarter GDP because imports are subtracted from the calculation.
Trump Appeals Tariff Case to Supreme Court
After a federal court ruled that President Trump’s tariffs overstepped his legal authority, the case has now been elevated to the Supreme Court. TRUMP has requested an expedited hearing, with opening arguments starting as early as November, according to Bloomberg. “If you take away tariffs, we could end up being a third-world country,” warned Trump.
If the Supreme Court upholds the decision, the U.S. could be on the hook for refunding tens of billions of dollars in tariff revenue while the average U.S. tariff rate of 16.3% could be halved, said Bloomberg Economics analyst Chris Kennedy.
