Financial deficits with China, EU can only be cured with tariffs: Trump

US President Donald Trump defended his administration's implementation of reciprocal tariffs on various countries, underlining the financial deficits the US faces with nations like China and the European Union and argued that tariffs are the only solution to these trade imbalances.

Donald Trump also criticised the trade surplus with these countries under former President Joe Biden, vowing to reverse it swiftly, while expressing his belief that tariffs would prove beneficial for the US. 

Sharing a post on social media platform Truth Social on Sunday (local time), 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."

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.

On April 2, Trump announced a widespread imposition of tariffs on countries worldwide. In February, soon after taking charge for the second time, Trump outlined a new trade policy focused on fairness and reciprocity and said that the US would implement reciprocal tariffs, charging other countries the same tariffs they impose on American goods.

As per the announcements, the import tariffs on other major countries are China (34 per cent), the European Union (20 per cent), Vietnam (46 per cent), Taiwan (32 per cent), Japan (24 per cent), India (26 per cent), the United Kingdom (10 per cent), Bangladesh (37 per cent), Pakistan (29 per cent), Sri Lanka (44 per cent), and Israel (17 per cent).

From April 9 onwards, countries with the largest trade deficits with the US will face higher, individualised tariffs. India is one of the countries affected, with a 26 per cent tariff imposed on all its exports.