Peter St Onge Podcast Ep 157 Weekly Roundup: Trade Deficit Drops in Half
Jan 26, 2026
A fast roundup of big economic stories from the week. The trade deficit halved as imports fell and exports shifted. A federal push to restart student loan collections and wage garnishments is explained. An indefinite visa freeze affecting dozens of countries is discussed. Analysis covers how Japan's policy shock sent global markets reeling and hit US stocks.
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Trade Deficit Halves Amid Reshoring
- U.S. trade deficit collapsed to its smallest in nearly two decades as imports fell and exports rose.
- Peter St Onge attributes the shift to tariffs, reshoring, and booming domestic growth outpacing China.
Prepare For Gradual Reshoring Effects
- Expect reshoring investment to gradually reduce import pressures as new factories come online through 2026–27.
- Plan for continued strong growth but slower import-driven deficit increases as capacity rebuilds domestically.
Student Loan Pause Masked Massive Defaults
- The Biden-era $1.6 trillion student loan pause effectively hid defaults and created political amnesty.
- Peter St Onge praises Trump's move to resume collections and warns about moral hazard and redistribution to taxpayers.