Trump's deficits and surpluses

BarcelonaOne of US President Donald Trump's key initiatives – perhaps the most important along with mass deportations – It has not passed the Supreme Court's filterAnd this, despite controlling an organization with a clear conservative majority. However, without questioning whether or not it is necessary to impose tariffs on third countries, the justices of the nation's highest court, by a 6-3 vote, consider that Trump overstepped his bounds by imposing tariffs on imports without congressional approval. They highlight one of the shortcomings of the leader of the world's leading power. And it is not the trade deficit he claims to want to combat, but rather the democratic one, by resorting to a law (IEEPA) that gives the president free rein to address "unusual and extraordinary threats" during national emergencies. The justices interpreted that the IEEPA "does not authorize tariffs imposed through executive orders."

But the democratic one is not his only shortcoming. Last year's trade deficit figures, $900 billion, almost equal those of the previous year, before these tariffs existed, and are comparable to the large deficits of the 1960s. This, coupled with numerous studies, They reveal that more than 90% of the cost of tariffs on foreign exports to the United States is paid by American companies and consumers.This reveals another deficit: management, which clashes with his constant tendency to portray himself as an exemplary and successful businessman. In any case, it can be said that he is using his presidency to multiply the personal and family economic returns, according to the New York TimesHowever, with the tariffs he announced with great fanfare last April on a day he dubbed "Liberation Day," he is not achieving the results he promised.

With his decision to manipulate international trade—we won't delve into his foreign policy interventions here—he has turned the global economy upside down with his constant back-and-forth, using tariffs as a tool to achieve his objectives. And now, with this latest legal challenge, he is generating even more uncertainty because, as he has been quick to declare, he will not abandon what has been one of the cornerstones of his presidency. Now he announces a new 10% tariff via executive order. The uncertainty continues.

And this has been a constant feature of Trump's presidency, which, with one statement or another, without any attempt at concealment, causes the stock markets to rise or fall like a yo-yo. But many questions remain, such as what will happen to the at least $160 billion raised through a channel the Supreme Court has declared illegal. Will it have to be returned to importers? Time will tell. Given past precedents, it's no surprise that the stock markets are restless and waiting to see what happens. Because if there's one area where Trump excels, it's in his ability to make the economy dance to the tune of his pronouncements, delivered primarily through his own social media platform, Truth Social.