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Trade troubles

Trade troubles
Lottie Tellyn
Lottie Tellyn
By Lottie TellynOctober 07, 2026
Lottie Tellyn

Lottie is a reporter at GZERO, where she covers all things geopolitics for the website and daily newsletter. Before moving to the US, she reported for The Times and Sunday Times of London, writing about everything from sports and travel to foreign affairs and breaking news. Lottie has a bachelor’s in Politics, Philosophy and Economics from Oxford University, and a master’s in journalism from Columbia University. Originally from Hampshire, England, she now lives in New York, where she can usually be found inviting far too many people round for dinner, out running in the park, and trying to remember to drive on the wrong side of the road.

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The US’s trade deficit – the difference between imports and exports – ballooned from $92.8 billion in July. Part of the growth comes from rising imports of computer chips driven by the AI boom. US President Donald Trump introduced sweeping tariffs since entering office with the stated goal of reducing that deficit, viewing it as a sign of weakness in America’s manufacturing sector. At the same time, the US relies on a small handful of Asian suppliers, mostly in Taiwan, for semiconductor imports to stay competitive in the AI race. Even so, many experts do not believe trade deficits necessarily harm the economy.

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