President Donald Trump stated that he will not reach a trade agreement with China until its trade surplus with the United States, which he claims is over $1 trillion, is resolved, Fox News reports.
Speaking to reporters aboard Air Force One, Trump emphasized the significant imbalance in trade between the two countries.
“We have a $1 trillion trade deficit with China. Hundreds of billions of dollars a year we lose to China, and unless we solve that problem, I’m not going to make a deal,” Trump declared. “I’m willing to make a deal with China, but they have to solve this surplus. We have a tremendous deficit problem with China… I want that solved.”
Trump also credited tariffs with attracting significant investment to the US, claiming $7 trillion in committed investments for automotive manufacturing plants, chip companies, and other businesses. He said these investments are occurring “at levels that we’ve never seen before.”
The President also alluded to ongoing trade discussions with leaders in Europe and Asia, but reiterated his hardline stance.
“A deficit is a loss,” Trump asserted, adding that he aims for surpluses or, at the very least, a balanced trade situation.
He singled out China as the most pressing concern due to the scale of its trade surplus.
“China would be the worst in the group because the deficit is so big, and it’s not sustainable. I was elected on this,” he said.
During the 16-minute press briefing, Trump also discussed the anticipated impact of tariffs, predicting an additional $1 trillion in revenue by next year. He further claimed that companies are relocating to the US, specifically mentioning North Carolina, Detroit, and Illinois.
The President has implemented a 10% baseline tariff on all imported goods, with some countries facing higher tariffs. China has been hit particularly hard, initially facing a 20% tariff earlier this year and now facing a 34% reciprocal tariff on top of the 10% baseline.
Canada and Mexico are currently exempt from reciprocal tariffs. However, they are subject to a 25% tariff on goods, with Canada also facing a 10% energy tariff. In response, Canadian Prime Minister Mark Carney vowed to “fight these tariffs with countermeasures.” Mexican President Claudia Sheinbaum announced that her country would unveil a “comprehensive program” on Thursday, according to Reuters.
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