| Published March 31, 2025
In a recent article published by The Daily Signal, Terence P. Jeffrey argues that the United States’ trade imbalance with China justifies the continuation and reinforcement of tariffs initially imposed during Donald Trump’s presidency. According to Jeffrey, China’s economic policies, including its manipulation of trade rules and industrial subsidies, have given it an unfair advantage in global commerce, necessitating protective measures to safeguard American industries.
The U.S.-China Trade Deficit: A Cause for Concern
Jeffrey highlights that in January 2025 alone, the U.S. trade deficit with China reached $31.7 billion, making up 42% of the overall U.S. trade deficit of $74.4 billion that month. This persistent trade imbalance, he argues, is a direct result of China’s exploitative trade practices, including currency manipulation, intellectual property theft, and heavy government subsidies to state-owned enterprises.
Furthermore, China’s overall trade surplus reached a staggering $1 trillion in 2024, reflecting the country’s dominant position in international trade. According to Jeffrey, these surpluses have led to multiple trade disputes at the World Trade Organization (WTO), as other nations challenge China’s economic tactics.
The Justification for Tariffs
Jeffrey contends that tariffs are not merely a political tool but an essential economic strategy to curb China’s unfair advantages. The Trump-era tariffs, which placed duties on billions of dollars’ worth of Chinese imports, were aimed at reducing reliance on Chinese goods, encouraging domestic production, and pressuring China into fairer trade agreements. He argues that maintaining these tariffs—or even expanding them—is necessary to protect American manufacturing jobs and prevent further economic dependence on China.
Counterarguments and Concerns
Despite Jeffrey’s strong defense of tariffs, critics warn of potential drawbacks. Some economists and business leaders argue that protectionist policies can lead to retaliatory measures from China, higher prices for American consumers, and disruptions in global supply chains. The Competitive Enterprise Institute, for instance, has cautioned that broad tariffs could ultimately harm American businesses more than they help, particularly those reliant on imported raw materials.
Additionally, concerns have been raised about the constitutional implications of imposing unilateral tariffs without congressional approval. Some trade policy experts argue that executive-imposed tariffs may overstep the government’s authority and lead to legal challenges.
Overall Takeaway: An Ongoing Trade Battle
Despite the criticism, Jeffrey maintains that tariffs remain a crucial tool in defending American economic interests. With China’s trade dominance showing no signs of slowing down, he argues that decisive action is necessary to level the playing field. As the Biden administration faces increasing pressure to address the trade deficit, the debate over tariffs is likely to remain a central issue in U.S.-China economic relations.
SOURCES: THE DAILY SIGNAL – China Deserves the Trump Tariffs
FINANCIAL TIMES – China’s export boom sparks record number of WTO disputes
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