While current US administration is trying to solve the trade deficit problem in a very bizarre way, the problem of trade deficit is very real. In Feb 2025, US generated 122 B of trade deficit (includes Goods & services).
To put this in practical terms, the over consumption in US is driving them to sell a piece of their assets (via mortage, land, stocks or debts) every month to foreigners. This cannot continue forever because citizens wouldn’t allow themselves to be owned by foreigners.
We know this cannot continue forever. It’s a ticking time bomb which would either be solved by moving into trade surplus domain or by other means (more sinister) like not paying debts or nationalising foreign asset ownership.
A collaborative approach would have been nice but US president chose a more combative approach. It might not work but it also means the problem still remains
What’s the view of people on the forum about this and what risk does it pose for our investments and how can we protect ourselves?
