How chaotic markets could help Trump balance trade

Donald Trump’s aversion to trade deficits has led to economic turbulence, where his tariff strategies resulted in significant market declines, followed by a rebound when he moderated his stance. The US’s substantial trade deficit, at $918 billion last year, reflects an intricate balance between imports and foreign investments, with foreign ownership of US stocks doubling over five years. While Trump’s actions may seek to address trade imbalances, they risk diminishing the attractiveness of US investments, potentially exacerbating the deficit he aims to reduce.