Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTRobyn TellefsenSat, June 13, 2026 at 2:00 PM GMT+2 11 min readMoneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.The U.S. has lived with a massive trade deficit for decades. But under President Donald Trump’s sweeping tariffs, that gap suddenly narrowed — and much faster than many expected.That became clear on CNBC when anchor Rick Santelli reacted in real time to the trade numbers.Top PicksThe ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100The IRS usually taxes gold as a collectible — but this little-known strategy lets you hold physical bullion tax-free. Get your free guide from Priority GoldDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s how to fix it ASAP“On the trade balance, which we know is going to be a deficit, we’re expecting a number around $58 billion,” Santelli said in January (1). As he read through the Commerce Department’s update, his tone shifted. “Buckle up; this is unreal! The movement in this number: -$29.4 billion — we cut it basically in half! We cut it in half!”October’s $29.4 billion trade deficit didn’t just come in well below economists’ forecasts — it marked a 39% drop from September’s $48.1 billion gap (2).Santelli also underscored how dramatic the swing was compared to earlier in 2025, before Trump’s tariffs took effect.“Just consider this: In March, it was $136 billion. Right now, it’s a whisker under $30 billion. We haven’t been that small in a long time — I don’t have enough records here to go back that far!” he said.As it turns out, it was the smallest trade deficit since June 2009, according to CNBC (3).Tariffs are designed to discourage imports and reshape trade flows, so the trend isn’t entirely unexpected. As Santelli noted, “Here’s the news on why it moved lower: Imports were down and exports were up.”Is manufacturing a more significant scorecard?Despite October’s noteworthy numbers, the trade deficit climbed back up to $55.9 billion in April (4).As of May, however, manufacturing in the U.S. has grown for five straight months, with activity reaching its highest level in four years, reports Reuters (5).That’s a boon for tariff supporters, who say the true measure of success is domestic production and industrial investment — not the trade deficit. After all, monthly trade figures can be volatile and tariffs are intended to reshape supply chains and manufacturing investment over years rather than months.But protectionists can’t take a victory lap just yet. The Iran war is complicating the issue by fracturing supply chains and jeopardizing manufacturing’s major recovery.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info