Stocks Tank As Trade Deficit Reaches 10-Year Highs

The U.S. trade deficit grew to a 10-year high Thursday as self-proclaimed “tariff man” President Donald Trump continued to place his trade war with China at the center of his administration’s economic platform.

“When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN,” he tweeted this week.

But trade deficits between the U.S. and China grew to an all-time high in October as imports rose 0.2 percent to $266.5 billion and exports fell 0.1 percent to $211 billion, making it clear that increased tariffs were not making “America rich again.”

The news came as the stock market fell once again Thursday, wiping away nearly all gains in 2018. Earlier this week, the U.S. Treasury yield curve inverted, a sign that typically indicates the economy is set to weaken. In a recent survey by Bloomberg, a vast majority of economists said the U.S. would likely see another recession before the end of 2020.

President Trump, who often takes credit for a thriving stock market and economy, has either blown off recessionary fears or placed the blame on Federal Reserve Chair Jerome Powell for raising interest rates.

But he may have more to worry about than he thinks.

“Trump’s biggest worry in 2020 isn’t a particular candidate or ticket, it’s a recession,” said Ford O’Connell, a Republican strategist and former McCain-Palin presidential campaign adviser. “Incumbents have won 15 to 4 since 1900, but what the losers all have in common is a recession or major economic event.”

Read more from Nicole Goodkind at Newsweek

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