American Tariffs and the U.S. Economic War with China
SUMMARY AND UPDATE (12/2025) America's trade deficit was $918 billion in 2024. It is expected to be higher in 2025. China's goods trade surplus in 2024 was just under $1 trillion; based on the first eleven months of 2025, it will be over $1 trillion in 2025. The sharp decrease in exports to the United States has been less than China's increase in exports to the rest of the world. Exports to countries in Asia and Africa were substantially higher . President Trump has partially rescinded the U.S. ban on exporting high-end Nvidia chips to China. The price is that Nvidia has to give part of the sales revenue on these chips to the U.S. government. Trump is negotiating similar deals with the other American chip designers and producers. TRUMP'S TARIFF STRATEGY The Trump tariff offensive is couched in domestic economic terms and objectives – to reduce the trade deficit, to reduce the fiscal deficit, and to increase domestic manufacturing, especially in technologies with ...