Chinas $1 Trillion Trade Surplus: What to Know as Trump Takes Office

China’s record trade surplus of almost $1 trillion last year has a nearly perfect mirror image on the other side of the world: an American trade deficit last year that is expected to clock in at around $1 trillion.But only a third of China’s surplus was with the United States.And only a third of the American trade deficit was with China.That tricky math awaits President-elect Donald J.

Trump, who will take office on Monday promising tariffs to reduce America’s trade deficits.Raising taxes only on goods from China may do little to whittle down the overall U.S.

trade imbalance.Countries around the world are also running big trade surpluses with the United States — nothing on the scale of China’s, but they are adding up.Other countries need trade surpluses with the United States to pay for their own trade deficits with China.If the Trump administration raises tariffs only on China, the United States may find itself with bigger trade deficits with other countries as American companies import from them instead.

But raising tariffs on imports from a wide range of countries could hit American allies.Running a very large trade deficit in manufactured goods, as the United States has been doing for decades, has eliminated well-paid jobs and weakened the country’s base for military production.But the big trade deficit also has meant that American consumers have enjoyed low prices.

Many consumers may be hesitant to give that up by paying higher prices for imported cars, smartphones and other products if Mr.Trump imposes broad tariffs.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.

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