Donald Trump announced a fresh "phase 1" trade deal with China last week, part of his ongoing bid to reduce the United States' huge trade deficit with China. The US has been buying more from China than China buys from the US for decades, but since coming into office Trump has made reducing that deficit central to his "America First" agenda. It's not easy to do. Consider that in 2018, after two full years of the Trump administration, the trade deficit with China actually swelled to its highest level since the Clinton years. That's because many perfectly healthy economic factors contribute to a trade deficit: stronger economic growth under Trump has meant more demand for foreign goods, so as long as the economy keeps humming along, it will be hard for Trump to reduce the deficit. Likewise, the strong US dollar makes foreign goods cheaper for US consumers to import, while China's own economic slowdown in 2018 decreased Chinese demand for American goods. For a historical perspective on all of this, here's a look at how the US-China trade balance has developed under each US president going back to 1993.
