Alongside his promise of 25 million jobs, Trump has also said he can get America growing at 4% a year again. That would be almost double what Obama achieved. The U.S. hasn't seen consistent 4% economic growth since the tech boom of the late 1990s.
Of course they matter. Trade deficits arise when we import more than we export. Easy said. It's a tad bit more complicated. When we keep incurring these deficits, year after year, we use our domestic currency (the $) to pay for those imports. This results in our trade partners getting a considerable supply of those $.
The trade deficit with China is $347 billion. It's responsible for 70 percent of the total U.S. deficit in goods. The other U.S. trading partners don't create much of a deficit. Why an Ongoing Trade Deficit Weakens the Economy. An ongoing trade deficit is detrimental to the nationâs economy because it is financed with debt.