The U.S. has lived with a massive trade deficit for decades. But under President Donald Trump’s sweeping tariffs, that gap suddenly narrowed — and much faster than many expected.

That became clear on CNBC when anchor Rick Santelli reacted in real time to the trade numbers.

“On the trade balance, which we know is going to be a deficit, we’re expecting a number around $58 billion,” Santelli said in January (1). As he read through the Commerce Department’s update, his tone shifted. “Buckle up; this is unreal! The movement in this number: -$29.4 billion — we cut it basically in half! We cut it in half!”

October’s $29.4 billion trade deficit didn’t just come in well below economists’ forecasts — it marked a 39% drop from September’s $48.1 billion gap.

Despite this, the trade deficit stood at $54.5 billion in January, according to the March trade report.

“Just consider this: In March, it was $136 billion. Right now, it’s a whisker under $30 billion. We haven’t been that small in a long time — I don’t have enough records here to go back that far!” he said.

As it turns out, it was the smallest trade deficit since June 2009, according to CNBC.

Trump’s sweeping tariffs have also drawn criticism from economists, including fears of retaliation from major trading partners. But with the October figures, some sounded more upbeat.

“The U.S. appears to be winning the trade war with tariffs curbing the imports of foreign goods, but America’s trading partners are not holding any grudge as they continue to buy more American goods and services,” Chris Rupkey, chief economist at Fwdbonds, told CNBC.

“So far, the forecasts for a U.S. recession are coming up dry as productivity continues to backstop growth.”

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