President Donald Trump made it clear Sunday that the United States will not be cutting any trade deals with China unless the massive trade deficit—now exceeding $1 trillion—is fully addressed.
Speaking to reporters aboard Air Force One, Trump didn’t hold back. “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,” he said. “I’m willing to make a deal with China, but they have to solve this surplus.”
The president pointed to the lopsided trade relationship as unsustainable, insisting that American taxpayers have paid the price for far too long. He also noted that he has spoken with leaders in Europe and Asia, many of whom are eager to make deals—but he won’t move forward until the numbers make sense for the U.S.
“A deficit is a loss,” Trump said. “We’re going to have surpluses, or we’re, at worst, going to be breaking even. But China would be the worst in the group because the deficit is so big, and it’s not sustainable. I was elected on this.”
Trump explained that the U.S. economy is already reaping the rewards of his aggressive tariff policy. He said tariffs have attracted $7 trillion in committed investment into U.S.-based automotive and chip manufacturing, with companies choosing to relocate to places like North Carolina, Detroit, and Illinois.
He also projected that tariffs will bring in an additional $1 trillion in revenue by next year.
The president expanded on his message Sunday night on Truth Social, writing, “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 U.S.A.… We are going to reverse it, and reverse it QUICKLY.”
As part of his economic strategy, Trump has implemented a 10% baseline tariff on all imported goods, with some countries facing even steeper penalties. China, in particular, has already been hit with a 20% tariff and will now face an additional 34% reciprocal tariff, bringing its total to 44%.
Canada and Mexico, while temporarily exempt from reciprocal tariffs, are still subject to heavy levies—25% on general goods, and in Canada’s case, an extra 10% energy tariff. Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum have both voiced their opposition, but Trump appears undeterred.
“What’s going to happen to the market? I can’t tell you,” Trump said. “But I can tell you our country has gotten a lot stronger, and eventually it’ll be a country like no other… the most dominant country, economically, in the world, which is what it should be.”