President Donald Trump stated on Sunday that he is unwilling to reach an agreement with China unless the country’s trade deficit, which exceeds $1 trillion, is addressed first.
Speaking to reporters aboard Air Force One, Trump highlighted that while certain countries have a trade deficit in the billions, with China, it has grown to more than $1 trillion.
“We have a trade deficit of $1 trillion with China. We lose hundreds of billions annually, and unless we address that, I won’t make a deal,” he remarked. “I’m open to negotiations with China, but they must resolve this imbalance. Our deficit with China is enormous, and I want that fixed.” Trump also emphasized that due to the tariffs, the U.S. has secured $7 trillion in investments, particularly in sectors like automotive manufacturing and tech, marking an unprecedented level of commitment.
Regarding trade deficits, Trump noted he has had discussions with leaders from Europe and Asia who are eager to strike deals. However, he reiterated that as long as these imbalances remain, no deals will be made.
“A deficit equals a loss,” he said. “We aim for surpluses, or at worst, a balanced trade. But China stands out as the biggest problem, with a deficit that’s unsustainable. This is why I was elected.”
Trump spoke for around 16 minutes, responding to numerous questions about tariffs.
He anticipates that by the next year, tariffs will generate an additional $1 trillion, and that companies will begin relocating to the U.S. in places like North Carolina, Detroit, and Illinois. “I can’t predict what will happen to the market, but our country has gotten much stronger, and it will eventually become the most dominant economic force in the world,” he stated.
Later on Sunday, Trump took to social media to share his thoughts on tariffs.
“We have enormous financial deficits with China, the European Union, and many others. The only way to resolve this is through tariffs, which are already bringing billions of dollars into the U.S.,” he wrote. “The trade surplus with these nations has grown under President Biden’s leadership, but we will reverse that, and do it swiftly. Eventually, people will realize that tariffs are a powerful tool for America.”
Trump has implemented a 10% baseline tariff on all imports into the U.S., with some countries facing even higher rates.
China, which had already been subjected to a 20% tariff earlier this year, will now face a 34% reciprocal tariff, in addition to the baseline 10% on all listed countries.
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