On Thursday, Yahoo Finance posted an article about the trade deficit.

The article reports:

The U.S. trade deficit narrowed sharply in January as exports surged to a record high and imports fell, a trend that if sustained, could see trade contributing to economic growth ‌in the first quarter.

The trade gap contracted 25.3% to $54.5 billion, the Commerce Department’s Bureau of Economic Analysis and ‌Census Bureau said on Thursday. Data for December was revised to show the deficit widening to $72.9 billion instead of $70.3 billion as previously estimated. Economists polled ​by Reuters forecast the trade deficit shrinking to $66.6 billion in January.

…Exports jumped 5.5% to an all-time high of $302.1 billion in January. The increase was the largest since October ​2021. Goods ​exports soared 8.1% to $195.5 billion. They were boosted by a $9.4 billion ​increase in exports of industrial supplies and materials, ‌mostly nonmonetary gold and other precious metals.

Capital goods exports increased $5.4 billion to a record high, boosted by computers, civilian aircraft as well as computer accessories. Exports of other goods rose $2.9 billion, also to an all-time high. But consumer goods exports decreased $2.8 billion to the lowest level since October 2022, pulled down by a $2.1 billion decline in pharmaceutical preparations.

Imports fell 0.7% to $356.6 billion in January. Goods imports slipped 1.0% to $277.3 billion. They were dragged down by a $3.3 billion decrease in consumer goods, mostly ‌pharmaceutical preparations. Imports of automotive vehicles, parts and engines fell $2.8 billion ​amid decreases in trucks, buses and special-purpose vehicles, as well as passenger ​cars.

The article concludes:

The ​goods trade deficit narrowed 17.6% to $81.8 billion in January. Exports of services increased $1.2 billion to a record high $106.7 billion, reflecting rises in other business services, financial services and charges for the use of intellectual property. Exports of ​travel services fell $0.3 billion, likely reflecting ‌a reduction in tourism.

Imports of services increased $0.2 billion to an all-time high of $79.3 billion amid gains in other ​business services and insurance services.

Trade made a negligible contribution to the economy’s 1.4% annualized growth pace in ​the October-December quarter.

Tariffs work. Until 1913, our government was totally funded by tariffs. Admittedly, the current government is doing a lot of things that are not in the Constitution, but wouldn’t it be wonderful to go back to a system where all Americans got to keep what they earned?