Why Vietnam Loves Donald Trump

Tariffs are changing supply chains, not cutting the trade deficit.

Thirty months into the Trump Presidency, the U.S. economy continues to import more than it exports. This isn’t a problem, since the trade deficit is of no great consequence as an economic measure. But in President Trump’s telling this is a clear and present danger, so it’s worth explaining why his tariffs haven’t reduced the U.S. trade deficit with the world.

One reason is the success of Mr. Trump’s other economic policies. Tax reform and deregulation have strengthened the U.S. economy and attracted a net surplus of capital...