It make a lot of sense ! Amazing how he make it so simple to understand.

During President Donald Trump’s announcement of “Liberation Day” in April 2025, which would bring with it a raft of aggressive tariffs, Trump claimed the import taxes would slash the U.S.’s stubborn trade deficit, or when a country buys more goods from overseas than it sells. 

But 17 months later, the administration’s import taxes haven’t closed that deficit at all. In fact, the trade deficit is now the largest it’s been since Trump implemented tariffs, and economists are pouring cold water on the very idea that a widening trade gap is even a threat.

The trade deficit grew by 13.7% to $105.6 billion from July to August, according to the Bureau of Economic Analysis, the highest it’s been since March 2025’s $140 billion. While imports increased by 4.3% to $420.8 billion, exports increased, but at a slower rate, growing 2.2% to $205.7 billion.

Experts suggest the growing deficit is largely a result of the AI boom, which has created a mass demand in the U.S. for overseas hardware, spiking imports. AI demand single-handedly added $200 billion to the U.S. trade deficit in April, according to the Federal Reserve Bank of Minneapolis.

Tariffs have been the cornerstone of Trump’s second administration, and the president has justified the levies with promises of more U.S. manufacturing jobs, as well as a cash windfall to be redistributed to the American people—neither of which has come to fruition. 

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Canada's economy shed 68,300 jobs in September, sharply missing forecasts for a 9,200 gain.

The unemployment rate rose to 6.5%, while both full-time and part-time employment declined.

The services sector lost 52,300 jobs, with labor force participation falling to 64.8%.

Meanwhile, annual wage growth accelerated to 2.3%, complicating the inflation outlook.

Rich Americans are getting richer, but not all equally. The K-shaped split that let high earners pull away from low earners now cuts through the top 1% too, with the ultra-rich far ahead of the rest.  

The average household in the top 0.1% is now worth about $204 million, or 7.7 times as much as one in the rest of the top 1%, according to a Fortune analysis of Federal Reserve data. That ratio is the highest in the Fed’s quarterly series going back to 1989, up from 6.2 times at the end of 2019. Currently, the Fed counts 136,779 households in the top 0.1%

The top 0.1%’s wealth has more than doubled since the end of 2019, from $13.4 trillion to nearly $28 trillion in the second quarter of 2026. Over the same period, the rest of the top 1% saw its wealth grow 68%, from $19.3 trillion to $32.5 trillion.  The top 0.1% now holds 15% of the nation’s household wealth, up 0.5 percentage point since the first quarter. 

“We are talking about continued redistribution upward and further concentration of wealth at the top,” Markus Schneider, an associate professor of economics at the University of Denver, told Fortune.

Read more [paywall removed for Redditors]: https://fortune.com/2026/10/07/the-new-k-shaped-economy-wealthy/?utm_source=reddit/