Washington DC [US]: US President Donald Trump has staunchly defended his administration’s implementation of reciprocal tariffs on several countries, citing mounting financial deficits with key trade partners like China and the European Union. He argued that tariffs are the only effective remedy for the current trade imbalances.
In a post on his social media platform Truth Social on Sunday (local time), Trump emphasized the scale of the trade deficits and praised the revenue generated through tariffs.
“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.”
Trump also took aim at his predecessor, former President Joe Biden, blaming him for a growing trade surplus with foreign nations, and vowed swift action to reverse the situation.
“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 data from the Office of the United States Trade Representative, total US goods trade with China amounted to USD 582.4 billion in 2024. Exports to China fell by 2.9% to USD 143.5 billion, while imports rose by 2.8% to USD 438.9 billion, resulting in a USD 295.4 billion goods trade deficit — a 5.8% increase from 2023.
Meanwhile, US-EU goods trade totaled USD 975.9 billion in 2024. Exports to the EU slightly increased by 0.7% to USD 370.2 billion, while imports surged 5.1% to USD 605.8 billion, expanding the trade deficit with the EU to USD 235.6 billion, up 12.9% from the previous year.
On April 2, Trump formally announced sweeping new tariffs on numerous countries, part of a broader trade policy overhaul that focuses on fairness and reciprocity. These tariffs, which mirror the charges imposed by foreign nations on US exports, are aimed at rebalancing trade dynamics.
As part of the announcement, the new import tariffs on major countries are as follows:
- China: 34%
- European Union: 20%
- Vietnam: 46%
- Taiwan: 32%
- Japan: 24%
- India: 26%
- United Kingdom: 10%
- Bangladesh: 37%
- Pakistan: 29%
- Sri Lanka: 44%
- Israel: 17%
Starting April 9, countries with the largest trade deficits with the United States will face higher, individualized tariffs. India is among the affected nations, with a 26% tariff imposed on all its exports to the US.