Why did the US trade deficit rise despite Trump tariffs?

Imports outpaced exports in 2025, lifting the US trade deficit to $901.5 billion while the goods gap neared $1.24 trillion. AI chip imports from Taiwan remained strong, and trade redirected toward Mexico and Vietnam. Tariffs can raise costs but may not reduce total imports if demand persists. That dynamic weakens the case that Trump tariffs alone can shrink deficits.

How could renewed tariffs affect Canadian investors?

Renewed Trump tariffs could raise input costs, shift sourcing within North America, and widen performance gaps across sectors. Canada may gain share in components and energy but face higher compliance and logistics costs. Watch pricing power, backlog quality, and lead times. FX moves can buffer or amplify returns. Review allocations after company guidance and policy updates.

Which S&P 500 sectors look most exposed to tariff changes?

Sectors with global supply chains are most exposed: autos, retail, semiconductors, and selected industrials. Tariffs can lift costs, compress margins, and delay deliveries. Areas with strong pricing power or local sourcing often hold up better. Monitor companies’ pass-through, supplier mix, and inventory levels during earnings calls to gauge resilience under Trump tariffs.

What technical levels matter for ^GSPC right now?

Key references include the 50-day average at 6894.63, 200-day at 6504.72, Bollinger middle at 6913.35, and bands near 6807.28 and 7019.42. Price sits around 6876.58 with RSI at 48.17 and ADX at 17.55. Those signals show a neutral tone. A sustained move above the mid-band would improve momentum.

Law and Government

^GSPC Today: February 20 — Record US Trade Gap Undercuts Tariff Bet

ByDanny Kontos February 20, 2026February 20, 2026

Trump tariffs are back in focus as the US trade deficit reached $901.5 billion in 2025 and the goods gap hit about $1.24 trillion. Markets are testing whether Trump tariffs reduce deficits or just reroute trade. For Canadians, the answer matters for currency, TSX sector earnings, and cross-border supply chains. AI chip imports from Taiwan, plus shifts toward Mexico and Vietnam, add pressure. We review the setup for ^GSPC, policy risks around a Supreme Court challenge, and what the supply chain shift could mean for portfolios in Canada today.