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Enhanced US Tariffs on Chinese Imports Target Trimming of Trade Deficit
By Prathapan Bhaskaran - Mar 05, 2025, 04:11 AM ET
Negative trade balance peaked at $366 billion in 2022, but remains a matter of concern at $295.4 billion in 2024
U.S. President Donald Trump has imposed additional 10% tariffs on major imports from China on top of 25% levies on some imports that his predecessor Joe Biden had imposed. Trump has been after the booming trade deficit with China, which was $295.4 billion in 2024, a 17.2% jump from the previous year.
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The U.S. government has geopolitical compulsions to keep trade deficits with China under check. However, imperatives of economic growth have pushed Americans to source pharmaceutical and electronic components from China. Washington’s balancing act has prevented a runaway trade deficit.
Spike in deficit
Data available on the Bureau of Economic Analysis shows the US trade deficit with China declined to $295.4 billion in 2024 from $302 billion in 2019, although there was a spike in the post-COVID pandemic economic slump period.
Related News: Will the tariffs imposed by the Trump administration have an impact on everyday Americans?
The deficit declined to $282.3 billion in 2020 before increasing to $334.2 billion the next year and $366.2 billion in 2022. Washington managed to bring down the deficit to a six-year low of $252.1 billion in 2023.
The failure of the country to increase exports to China resulted in the surge in the trade deficit. The exports have been struggling vis-à-vis imports, all through, with the exports declining by 14.3% to $143.5 billion in 2024 from $167.5 billion in 2019. Exports peaked at $197.4 billion in 2022 before tapering to $195.5 billion in 2023 and sharply falling to $143.5 billion. Imports from China, which was $469.5 billion in 2019, peaked in 2022 at $563.6 billion before declining to $438.9 billion in 2024.
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