The top false claims Trump makes about trade

Trump views the trade balance as a zero-sum scorecard of sorts, arguing that a deficit means the US is losing to China. As a candidate in 2016, he called the US-China trade deficit "the greatest theft in the history of the world."

The figure is driven by many factors, however, including foreign-exchange rates, the amount a country borrows from abroad, and economic policies at home.

The trade deficit the US holds with other countries widened to its highest level in a decade in 2018, partly because of a $1.5 trillion tax cut package that took effect that year. The deficit-funded package created more demand for imports, while a strong dollar weighed on exports.

"Tariffs will bring in FAR MORE wealth to our Country than even a phenomenal deal of the traditional kind. Also, much easier & quicker to do," Trump wrote on Twitter last week.

Nope. Tariffs create market distortions and can lead to retaliatory measures, causing deadweight losses. They also cast a cloud of uncertainty onto businesses and consumers, who might then delay investment and spending.

And remember, research suggests revenue from duties ultimately comes from American businesses and consumers.