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The U.S. has lived with a massive trade deficit for decades. But under President Donald Trump\u2019s sweeping tariffs, that gap suddenly narrowed \u2014 and much faster than many expected.<\/p>\n
That became clear on CNBC when anchor Rick Santelli reacted in real time to the trade numbers.<\/p>\n
Top Picks <\/p>\n
The ultra-rich use these 5 real estate strategies to build wealth while they sleep \u2014 you can start with just $100<\/a><\/p>\n<\/li>\n The IRS usually taxes gold as a collectible \u2014 but this little-known strategy lets you hold physical bullion tax-free. Get your free guide<\/a> from Priority Gold<\/p>\n<\/li>\n Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake \u2014 here\u2019s how to fix it ASAP<\/a><\/p>\n<\/li>\n<\/ul>\n \u201cOn the trade balance, which we know is going to be a deficit, we\u2019re expecting a number around $58 billion,\u201d Santelli said in January (1). As he read through the Commerce Department\u2019s update, his tone shifted. \u201cBuckle up; this is unreal! The movement in this number: -$29.4 billion \u2014 we cut it basically in half! We cut it in half!\u201d<\/p>\n October\u2019s $29.4 billion trade deficit didn\u2019t just come in well below economists\u2019 forecasts \u2014 it marked a 39% drop from September\u2019s $48.1 billion gap (2).<\/p>\n Santelli also underscored how dramatic the swing was compared to earlier in 2025, before Trump\u2019s tariffs took effect.<\/p>\n \u201cJust consider this: In March, it was $136 billion. Right now, it\u2019s a whisker under $30 billion. We haven\u2019t been that small in a long time \u2014 I don\u2019t have enough records here to go back that far!\u201d he said.<\/p>\n As it turns out, it was the smallest trade deficit since June 2009, according to CNBC (3).<\/p>\n Tariffs are designed to discourage imports and reshape trade flows, so the trend isn\u2019t entirely unexpected. As Santelli noted, \u201cHere\u2019s the news on why it moved lower: Imports were down and exports were up.\u201d<\/p>\n Is manufacturing a more significant scorecard? <\/p>\n Despite October\u2019s noteworthy numbers, the trade deficit climbed back up to $55.9 billion in April (4).<\/p>\n 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).<\/p>\n That\u2019s a boon for tariff supporters, who say the true measure of success is domestic production and industrial investment \u2014 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.<\/p>\n But protectionists can\u2019t take a victory lap just yet. The Iran war is complicating the issue by fracturing supply chains and jeopardizing manufacturing\u2019s major recovery.<\/p>\n \u201cThe durability of this manufacturing upturn remains in doubt,\u201d Oliver Allen, senior U.S. economist at Pantheon Macroeconomics, told Reuters. \u201cMany companies are bringing forward orders and activity to build inventories to protect against supply chain disruptions. That lift likely will be short-lived and the medium-term \u200boutlook for demand still looks shaky.\u201d<\/p>\n Read More: Thanks to Jeff Bezos, you can become a landlord for $100 \u2014 without the headache of actually being one<\/a><\/strong><\/p>\n A new setback in Trump\u2019s trade war <\/p>\n Despite a Supreme Court decision that struck down Trump\u2019s sweeping tariffs, the president is continuing with his battle plan.<\/p>\n He took to social media to declare his \u201cabsolute right\u201d to impose new tariffs and claim the Supreme Court had \u201cransacked\u201d the country with its ruling, reports the Guardian (6). In fact, soon after the court\u2019s decision, President Trump imposed 10% tariffs under a different law than his original levies.<\/p>\n However, a panel of federal judges ruled in May that the latest duties were unlawful. The government has appealed that decision (7) and launched trade investigations that are expected to lead to new tariffs later this summer (8).<\/p>\n In the meantime, support from everyday Americans is waning as their frustration with tariffs grows. According to a survey conducted by the Harris Poll earlier this year, 7 in 10 Americans say Trump\u2019s tariffs have led them to pay higher prices. Across party lines, the sticker shock is real (9).<\/p>\n Trump\u2019s sweeping tariffs have also drawn criticism from economists, including fears of retaliation from major trading partners. But with the October figures, some sounded more upbeat.<\/p>\n \u201cThe U.S. appears to be winning the trade war with tariffs curbing the imports of foreign goods, but America\u2019s trading partners are not holding any grudge as they continue to buy more American goods and services,\u201d Chris Rupkey, chief economist at Fwdbonds, told CNBC.<\/p>\n \u201cSo far, the forecasts for a U.S. recession are coming up dry as productivity continues to backstop growth.\u201d<\/p>\n Third-quarter data backed up that assessment. During that period, U.S. GDP grew at an annual rate of 4.4% \u2014 the strongest pace since late 2023 (10).<\/p>\n However, the growth rate was only at 0.5% for the fourth quarter of 2025, reflecting downturns in government spending, exports and consumer spending. In the first quarter of 2026, GDP rebounded slightly to 1.6% (11).<\/p>\n Still, some analysts see tailwinds ahead.<\/p>\n \u201cWe expect fading policy uncertainty, the boost from tax cuts and the recent loosening of monetary policy to mean the economy strengthens in 2026,\u201d said Michael Pearce, chief U.S. economist at Oxford Economics (12).<\/p>\n If you share this optimism, here\u2019s a look at a few simple ways to position yourself for America\u2019s growth for the remainder of this year \u2014 and beyond.<\/p>\n \u201cThe best thing to do,\u201d according to Warren Buffett <\/p>\n The U.S. stock market has been a powerful engine of wealth creation. Trump has pointed to that strength, saying in December, \u201cThe only thing that\u2019s really going up big? It\u2019s called the stock market and your 401(k)s (13).\u201d<\/p>\n The benchmark S&P 500 returned nearly 23% in the past 12 months and has gained more than 84% over the past five years (14).<\/p>\n Of course, consistently picking winning stocks isn\u2019t easy. That\u2019s why legendary investor Warren Buffett argues that most people don\u2019t need to pick individual companies at all to benefit from the stock market\u2019s long-term growth.<\/p>\n \u201cIn my view, for most people, the best thing to do is own the S&P 500 index fund,\u201d Buffett has famously stated (15). This approach gives investors exposure to 500 of America\u2019s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active trading.<\/p>\n The beauty of this approach is its accessibility \u2014 anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns<\/a>, a popular app that automatically invests your spare change.<\/p>\n Signing up for Acorns takes just minutes: Link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference \u2014 your spare change \u2014 into a diversified portfolio.<\/p>\n With Acorns, you can invest in an S&P 500 ETF with as little as $5. And if you sign up today with a recurring investment, Acorns will add a $20 bonus<\/a> to help you begin your investment journey.<\/p>\n Build wealth through U.S. real estate <\/p>\n Beyond stocks, real estate has long been another cornerstone of wealth-building in America.<\/p>\n In fact, Buffett often points to real estate when explaining what a productive, income-generating asset looks like. In 2022, Buffett stated that if you offered him \u201c1% of all the apartment houses in the country\u201d for $25 billion, he would \u201cwrite you a check (16).\u201d<\/p>\n Why? Because regardless of what\u2019s happening in the broader economy, people still need a place to live and apartments can consistently produce rent money.<\/p>\n Real estate also offers a built-in hedge against inflation. When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts with inflation.<\/p>\n Of course, you don\u2019t need to have $25 billion \u2014 or even to buy a single property outright \u2014 to invest in real estate. Crowdfunding platforms like Arrived<\/a> offer an easier way to get exposure to this income-generating asset class.<\/p>\n Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100<\/a>, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.<\/p>\n The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you\u2019d like to purchase and then sit back as you start receiving any positive rental income distributions<\/a> from your investment.<\/p>\n Another great option is mogul, a real estate investment platform offering fractional ownership in blue-chip rental properties<\/a>.This gives investors monthly rental income, real-time appreciation and tax benefits \u2014 without the need for a hefty down payment or 3 a.m. tenant calls.<\/p>\n Founded by former Goldman Sachs real estate investors, the team handpicks the top 1% of single-family rental homes nationwide<\/a> for you. Simply put, you can invest in institutional-quality offerings for a fraction of the usual cost.<\/p>\n Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% and 12% annually. Offerings often sell out in under three hours<\/a> with investments typically ranging between $15,000 and $40,000 per property.<\/p>\n Every investment is secured by real assets<\/a>, not dependent on the platform\u2019s viability. Each property is held in a standalone Propco LLC, so investors own the property \u2014 not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.<\/p>\n Getting started is a quick and easy process. You can sign up for an account and then browse available properties<\/a>. Once you verify your information with the team, you can invest like a mogul in just a few clicks.<\/p>\n A new gold rush? <\/p>\n The October trade report also drew attention to one standout commodity \u2014 gold.<\/p>\n That month, exports of nonmonetary gold surged by $6.8 billion, while imports of the precious metal fell by $1.4 billion.<\/p>\n Gold went on a tear last year, soaring 65% (17). And though the Iran conflict has triggered a price drop since then, many analysts expect the precious metal to recover and even hit all-time highs by the end of 2026 (18).<\/p>\n After all, unlike fiat currencies, gold isn\u2019t tied to any single government and can\u2019t be printed out of thin air by central banks. When markets get turbulent, money tends to move toward assets perceived as stable \u2014 and gold often tops that list.<\/p>\n Ray Dalio, founder of the world\u2019s largest hedge fund, Bridgewater Associates, has repeatedly highlighted gold\u2019s role in a resilient portfolio.<\/p>\n \u201cPeople don\u2019t have, typically, an adequate amount of gold in their portfolio,\u201d Dalio told CNBC last year (19). \u201cWhen bad times come, gold is a very effective diversifier.\u201d<\/p>\n One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold<\/a>, making it an option for those looking to help shield their retirement funds against economic uncertainties.<\/p>\n When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals for free<\/a>. Just keep in mind that gold is typically best used as just one part of a well-balanced portfolio.<\/p>\n – With files from Jing Pan.<\/p>\n You May Also Like <\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/strong><\/p>\n Article sources <\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n @CNBCtelevision (1<\/a>); Bureau of Economic Analysis (2<\/a>), (4<\/a>), (10<\/a>), (11<\/a>); CNBC (3<\/a>), (15<\/a>), (16<\/a>); Reuters (5<\/a>), (12<\/a>), (18<\/a>); The Guardian (6<\/a>), (9<\/a>); Reed Smith (7<\/a>); The Washington Post (8<\/a>); @ntdtv (13<\/a>); Yahoo Finance (14<\/a>), (17<\/a>); @CNBCInternationalLive (19<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. 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