American Tariffs and the U.S. Economic War with China
SUMMARY AND UPDATE (2/26) President Trump's tariff offensive has been a failure in its main objectives of narrowing the U.S. trade deficit or reducing China's trade surplus. China's trade surplus was larger in 2025 than in 2024. Reduced exports to the United States was more than made up by a large increase of exports to the rest of the world, including rerouting exports to the U.S. through Asian countries and Mexico. America's trade deficit in goods in 2025 was higher than in 2024. The overall trade deficit stayed the same as the higher goods deficit was offset by a larger trade surplus in services. Growth in total exports was about the same as growth in total imports. Total imports were $4.7 trillion; total exports were $3.4 trillion. The trade deficit was $901 billion, almost exactly the same as in 2025. As of January 19, 2026, the average tariff rate was 16.9%. The increased cost of American imports is mostly paid by American consumers. The government collected so...