The U. S. Trade Deficit: A Dangerous Obsession The United States is obsessed with its ever-growing trade deficit. Yet trade is no longer a valid measure of global competitiveness. Today U. S. firms compete in the world marketplace through foreign affiliate sales instead of exports-and they do so with unparalleled success. Overblown fears about the burgeoning trade deficit, along with a slowing U. S. economy, could spark protectionist policies in Washington, which could then trigger redamations around the globe. This outcome not the size of the trade deficits the greatest danger