President Donald Trump has made it crystal clear: there will be no deal with China unless the staggering $1 trillion trade deficit gets addressed. Speaking to reporters aboard Air Force One, Trump laid out his stance on trade imbalances, emphasizing that the U.S. loses hundreds of billions of dollars annually to China.

"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 want that solved." His message? Fix the deficit or forget the handshake.

Trump credited the tariffs for bringing in committed investments worth $7 trillion, with new automotive manufacturing plants and chip companies popping up across the country "at levels that we’ve never seen before." While some leaders in Europe and Asia are apparently "dying" to strike deals with the U.S., Trump is sticking to his guns. "A deficit is a loss," he said. "We’re going to have surpluses, or at worst, break even." He didn’t mince words when describing China’s deficit as "the worst in the group."

The president also shared bold predictions: by next year, tariffs will generate an additional $1 trillion, and companies will relocate to U.S. hubs like North Carolina, Detroit, and Illinois. Trump didn’t shy away from touting America’s future dominance in the global economy, calling it "a country like no other." His confidence in tariffs is unwavering, labeling them "a very beautiful thing" on Truth Social later that night.

He further highlighted his administration's tough tariff policies, including a 10% baseline tariff on all imported goods, with China slapped with even higher rates. Reciprocal tariffs on China now stand at a hefty 34%, while Canada and Mexico face slightly lower but still impactful rates. Canada’s Prime Minister Mark Carney has promised countermeasures, while Mexico’s President Claudia Sheinbaum plans to unveil a "comprehensive program" in response.

Trump’s stance on trade was central to his election campaign, and he seems determined to deliver on those promises. Whether this tough-love approach will yield the economic dominance he envisions remains to be seen, but one thing’s certain: Trump is not backing down.

Economics News

Trump Stands Firm: No Deal With China Until Trade Deficit Is Solved