The same political party that hates big corporations, pushes for open borders, advocates for expanded government handouts, and demands a higher minimum wage—while supporting illegal immigration that suppresses wages for low-skilled workers—also wants you to believe that China and trade deficits are fine. But they aren’t.
President Trump’s tariff regimen, which has allies and adversaries feeling nervous, is a bold move to defend the American economy by confronting the U.S. trade deficit, which has hollowed out domestic manufacturing and threatens national sovereignty.
A trade deficit occurs when a country imports more goods and services than it exports. In simpler terms, it means the U.S. buys more from the world than it sells. While this might not seem like a problem on the surface—after all, we’re getting goods we want—persistent and growing trade deficits reflect deeper issues. They often indicate an erosion of industrial capacity, job losses, growing dependence on foreign debt, and economic vulnerabilities.
Two of the most glaring examples of U.S. trade imbalance are with China and Germany. In 2023, the U.S. goods trade deficit with China was approximately $279 billion, according to the U.S. Census Bureau. Despite decades of diplomacy and trade agreements, China continues to flood American markets with cheap products, while maintaining a labyrinth of tariffs, subsidies, and regulatory barriers that keep U.S. companies out of the Chinese market.
Meanwhile, Germany, under the umbrella of the European Union, had a goods trade surplus of around $67 billion with the U.S. in the same year. German cars and machinery dominate U.S. imports, while American exports are stifled by VAT taxes and complex EU regulations.
The imbalance isn’t the result of American failure—it’s the result of unfair trade practices abroad. Tariffs are a key part of this disparity. China imposes average tariffs of 7.5% on U.S. goods, while the U.S. average is only 2.5%. Automobiles and high-tech goods face Chinese tariffs as high as 15%.
Both Germany and China also use domestic subsidies, red tape, import quotas, and opaque certification processes to protect their home industries. China has repeatedly suppressed the value of its currency to make exports cheaper, undercutting American manufacturers. Foreign governments strategically invest in industries they deem essential, while the U.S. has largely abandoned industrial planning. Trump’s tariffs are a response to these practices, not a cause of economic turmoil. In fact, they represent the first serious attempt in decades to correct the problem.
The idea that trade deficits “don’t matter” is just wrong. Manufacturing as a share of U.S. GDP has declined from 25% in 1970 to under 11% today. Once a world leader in steel, semiconductors, and electronics, the U.S. has watched its factories move overseas. These are not just economic losses—they’re strategic vulnerabilities.
Since China joined the World Trade Organization in 2001, the U.S. has lost an estimated 3.7 million manufacturing jobs. These were high-paying, often union jobs that supported entire communities. The replacement jobs—often in service or retail—pay far less. To finance its trade deficit, the U.S. borrows or sells assets. Foreign holdings of U.S. Treasury debt now exceed $7.6 trillion, with China alone holding $859 billion.
This gives strategic rivals enormous leverage over our economy and financial system. While the dollar remains strong for now, chronic trade deficits undermine its long-term value. A weakening dollar would drive up the cost of imports, trigger inflation, and erode the living standards of American families. The COVID-19 pandemic and ongoing global conflicts have revealed how dependent the U.S. is on foreign supply chains for essential goods—including medicines, semiconductors, and critical minerals. In a crisis, this dependence could prove catastrophic.
President Trump’s critics will scoff and claim he’s using tariffs as a political stunt. But the data makes it clear: America’s trade deficit is not just an accounting issue—it’s a national weakness. No country can remain great while losing its ability to produce, innovate, and defend itself. Trump’s approach is about restoring fairness.
If other countries want access to the American consumer, they should play by the same rules. That means lowering their tariffs, removing their barriers, and allowing American companies to compete on equal terms. Until they do, tariffs aren’t protectionist—they’re patriotic.
The post The Real Reason Trump Hates Trade Deficits appeared first on The Gateway Pundit.
