Title: U.S. Trade Deficit With China and Why It's So High
Headings: U.S. Trade Deficit With China and Why It's So High
U.S. Trade Deficit With China and Why It's So High
Key Takeaways
Annual Trade Deficit
What Causes the U.S.—China Trade Deficit?
Effects of the Trade Deficit
What's Being Done
Article Sources

Content: These usually result in trade embargoes or tariffs that can raise the costs of imports for the offending nation. The U.S. economy is affected by the trade deficit. Jobs and capital are moved offshore, causing financial difficulties for consumers and smaller businesses. The tariffs imposed by the administration have been paid by U.S. companies, for the most part, further costing them $46 billion after losing over $1.7 trillion in stock values. 9 ﻿
China is also one of the leading holders of U.S. Treasuries, which it purchases to reduce the value of its currency, thus allowing it to maintain a low exchange rate with the dollar. U.S. consumers benefit from low prices, and the government and economy benefit from capital being invested into the country. What's Being Done
President Donald Trump enacted a 25% tariff on steel imports and a 10% tariff on aluminum that went into effect on July 6, 2018, impacting $34 billion worth of Chinese imports. 10 ﻿
On December 13, 2019, Trump announced a trade deal between the United States and China, in which both countries agreed to increase certain imports and exports. 11 ﻿ He signed it on January 15, 2020. 12 ﻿
President Joe Biden, elected in November 2020, retained Trump's position on trade with China early in 2021 as his administration reviewed the former administration's policies.