US President Donald Trump defended his administration’s decision to use tariffs. He said they were the only way to fix trade imbalances with countries like China and the European Union.
On Truth Social, Trump 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.”
Criticism of Biden’s Trade Record
Trump blamed the trade surplus with these countries on Former President Joe Biden’s leadership. He said, “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!”
US-China Trade Numbers Rise
The Office of the United States Trade Representative shared updated figures. In 2024, US trade with China reached USD 582.4 billion.
US exports to China dropped by 2.9 per cent (USD 4.2 billion) and stood at USD 143.5 billion. At the same time, imports from China rose by 2.8 per cent (USD 12.1 billion), reaching USD 438.9 billion.
The result was a goods trade deficit of USD 295.4 billion, a 5.8 per cent increase (USD 16.3 billion) from 2023.
Trade Deficit with the EU Also Increases
The US also saw a rising trade gap with the European Union in 2024.
Total goods trade with the EU hit USD 975.9 billion. US exports to the EU were USD 370.2 billion, up 0.7 per cent (USD 2.6 billion). However, imports reached USD 605.8 billion, increasing by 5.1 per cent (USD 29.4 billion).
This led to a USD 235.6 billion trade deficit, which rose by 12.9 per cent (USD 26.9 billion) from the year before.
Trump Announces Global Tariffs
Earlier on April 2, Trump revealed new tariffs on several countries. In February, just after starting his second term, he announced a trade plan focused on fairness and reciprocity.
He said the US would charge the same tariffs that other nations place on American goods. The new import tariff list includes China (34%), EU (20%), Vietnam (46%), Taiwan (32%), Japan (24%), India (26%), UK (10%), Bangladesh (37%), Pakistan (29%), Sri Lanka (44%), and Israel (17%).
Higher Tariffs Start April 9
Starting April 9, the US will impose higher, country-specific tariffs. These will apply to nations with the largest trade deficits with the US.
India will face a 26 per cent tariff on all its exports to the United States.
