U.S. national debt tops $40 trillion for first time
The United States has reached a historic and troubling financial milestone, with the national debt surpassing $40 trillion for the first time, according to the Treasury Department.
(NBC)- The United States has reached a historic and troubling financial milestone, with the national debt surpassing $40 trillion for the first time, according to the Treasury Department.
The nation’s debt has more than doubled over the past decade. President Joe Biden and President Donald Trump during his first term each added roughly $8 trillion to the debt, with much of the borrowing tied to the response to the COVID-19 pandemic.
The White House says it is focused on cutting waste, fraud and abuse in federal spending while accelerating economic growth. The administration is also promising lower inflation and pushing for an interest rate cut to reduce borrowing costs.
Trump renewed that call Wednesday while downplaying concerns about the economy.
“I think we have a very powerful country, and we’re powering through these ridiculous interest rates,” Trump said.
The president is also increasingly using economic pressure as a tool in foreign policy.
Trump is threatening significant economic consequences against countries that help Iran evade U.S. sanctions as his administration seeks to further isolate Tehran.
At the same time, the president has temporarily paused a planned 50% tariff on Canadian goods until midnight Friday. Oil, natural gas and critical minerals are excluded from the tariff.
Trump said the three-day delay was granted at Canada’s request as negotiators work to finalize a new trade agreement between the two countries.
“I delayed it at the request of Canada for three days so we can iron out the details,” Trump said. “But it’s going to be a wonderful deal, hopefully a wonderful deal for everybody.”
Canadian negotiators say they are finalizing the text of the agreement, with Canada-U.S. Trade Minister Dominic LeBlanc expressing confidence in the negotiations.
The growing national debt could also have consequences for consumers. Continued deficit spending can contribute to inflationary pressure, adding another challenge as policymakers work to bring rising prices under control.
