“Massive financial deficits with China, EU can only be cured….”: Trump

Washington DC: United States President Donald Trump came forward on Sunday and defended his administration’s implementation of reciprocal tariffs on various countries, stating that America faces financial deficits with China and the European Union. He argued that tariffs are the only solution to these trade imbalances. The US President also criticised the trade surplus with the countries under the Biden administration, pledging to reverse it swiftly. He stated that tariffs will be beneficial for the country.

Trump wrote, took to social media platform Truth Social on Sunday and wrote, “We have massive financial deficits with China, the European Union, and many others. The only way this problem can be cured is with tariffs, which are now bringing tens of billions of dollars into the USA. They are already in effect, and a beautiful thing to behold.”

He added, “The surplus with these countries has grown during the “Presidency” of sleepy Joe Biden. We are going to reverse it, and reverse it quickly. Some day people will realise that tariffs, for the United States of America, are a very beautiful thing!”

According to the Office of the United States Trade Representative, US total goods trade with China were an estimated USD 582.4 billion in 2024. US goods exports to China in 2024 were USD 143.5 billion, down 2.9 per cent (USD 4.2 billion) from 2023. US goods imports from China in 2024 totaled USD 438.9 billion, up 2.8 per cent (USD 12.1 billion) from 2023. The US goods trade deficit with China was USD 295.4 billion in 2024, a 5.8 per cent increase (USD 16.3 billion) over 2023, as per the Office of the United States Trade Representative.

On the other hand, US total goods trade with the EU were an estimated USD 975.9 billion in 2024. US goods exports to the EU in 2024 were USD 370.2 billion, up 0.7 per cent (USD 2.6 billion) from 2023. US goods imports from the EU totaled USD 605.8 billion in 2024, up 5.1 per cent (USD 29.4 billion) from 2023. The US goods trade deficit with the EU was USD 235.6 billion in 2024, a 12.9 per cent increase (USD 26.9 billion) over 2023.

In early April, President Trump initiated a global tariff increase.  This followed a February announcement of a new trade policy emphasizing fairness and reciprocity, promising retaliatory tariffs mirroring those levied against US products by other nations.

Import tariffs vary significantly across major trading partners, ranging from a low of 10 percent (United Kingdom) to a high of 46 percent (Vietnam).  Other notable tariffs include 34 percent (China), 20 percent (European Union), 32 percent (Taiwan), 24 percent (Japan), 26 percent (India), 37 percent (Bangladesh), 29 percent (Pakistan), 44 percent (Sri Lanka), and 17 percent (Israel).

Notably, from Wednesday onwards, countries with largest trade deficit with America are going to face higher and individualised tariffs. India is also among the affected countries, with a 26 per cent tariff imposed on all its exports.

(with ANI inputs)

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