Trump says US not willing to make deal with China unless trade deficit is solved
President Trump declared Sunday he refuses to negotiate with China until the massive trade deficit exceeding $1 trillion is addressed. Speaking to journalists aboard Air Force One, Trump emphasized the scale of the problem.
"We have a $1 trillion trade deficit with China. We lose hundreds of billions of dollars yearly to China, and unless we fix that problem, I'm not going to make a deal," he stated. "I'm ready to negotiate with China, but they must resolve this surplus. We face a huge deficit issue with China... I need that fixed."
Trump claimed that due to his tariff policies, the U.S. has secured $7 trillion in promised investments for automotive manufacturing facilities, semiconductor companies, and other enterprises "at levels we've never witnessed previously."
Regarding trade imbalances, Trump revealed he has conversed with numerous European and Asian leaders who are "desperate" to strike agreements, but he refuses while deficits remain.
"A deficit represents a loss," he explained. "We will achieve surpluses or, at minimum, break even. But China ranks worst because their deficit is so enormous and unsustainable."
"I was elected based on this," Trump added.
Trump spoke with reporters for approximately 16 minutes, answering multiple questions about tariffs. He expects these measures will generate an additional $1 trillion by next year. He also predicted companies will start moving operations to the U.S. in locations such as North Carolina, Detroit, and Illinois.
"What will happen to the market? I cannot predict. But I can tell you our nation has grown much stronger, and eventually it will be a country unlike any other," Trump stated. "It will become the most economically dominant nation worldwide, which is appropriate."
Later Sunday evening, Trump posted on Truth Social about tariffs: "We have enormous Financial Deficits with China, the European Union, and many others. The only solution to this issue is TARIFFS, which now bring Tens of Billions of Dollars into the U.S.A. They are already working, and a wonderful sight to behold. The Surplus with these Countries increased during Sleepy Joe Biden's 'Presidency'. We will reverse it, and reverse it RAPIDLY."
"One day individuals will notice that Tariffs, for the United States of America, are a truly splendid thing!" Trump wrote. He established a 10% baseline tariff on all goods imported into the United States while certain nations received higher rates.
He adopted a particularly stern stance toward China, which had already been subject to a 20% tariff earlier this year. China will now encounter a 34% reciprocal tariff in addition to the 10% baseline imposed on all listed countries.
Canada and Mexico currently avoid the reciprocal tariffs, but they face a 25% tariff on products, with Canada also receiving a 10% energy tariff.
Canadian Prime Minister Mark Carney pledged to "fight these tariffs with countermeasures," while Mexican President Claudia Sheinbaum indicated her nation would reveal a "comprehensive program" on Thursday, according to Reuters.
