When President Trump threatened to increase tariffs earlier this year, a surge of foreign goods entered the US as businesses stockpiled inventory ahead of potential cost hikes. This rush distorted economic data, leading to a 0.5% decrease in the US economy in Q1, the worst performance in three years. Despite initial concerns, the $390 billion trade deficit in Q1 2025 was largely due to over-reliance on foreign goods that tariffs aimed to discourage. However, following the implementation of tariffs in April, imports have decreased significantly, leading to a faster-than-expected reduction in the US trade deficit. Trump sees this as a victory for his aggressive tariff strategy, which is now being portrayed as successful in reducing the trade gap.