US has highest trade deficit in the world. Who has highest trade surplus? Here's what trade imbalance and reciprocal tariffs mean and why it matters

The U.S. trade deficit narrowed in February, but the level of imports remained elevated after businesses front-loaded goods to avoid higher prices from tariffs, keeping trade on track to be a drag on economic growth in the first quarter.

To calculate its ‘reciprocal tariffs’, the Trump administration has opted for a crude formula with no basis in trade theory. We are all going to pay the price.