A couple of days after proposing universal tariffs of 25 per cent on autos, drugs and pharma imports, US President Donald Trump hinted at a trade deal with China. Trump said a trade deal with China is "possible," even though Beijing is one of the key targets of his tariff rhetoric. The president had agreed to "A great trade deal with China" in 2020.

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However, as soon as he was in the white house, trump announced sweeping tariffs on foes and allies. And since then, has shown that he wants a deal and not a war. One can say he is getting a deal based on how things have turned out since his threats of import taxes. India, for example, has given him some concessions and is rushing for a trade deal with the US before his reciprocal and other tariffs kick in. Trump's argument for trade levies is to lower the massive US trade deficit. 

Beijing says 'tariff wars produce no winners'

While Beijing has retaliated with tit-for-tat tariffs on US imports in response to trump's hint of a China deal, Beijing said there are no winners in a trade war. That gives hope of a trade deal sooner rather than later. Data shows that China has the largest trade surplus with the United States in goods—295.4 billion dollars in 2024. Separately, the European union has responded to trump's tariffs with a promise of similar taxes.

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However, the EU trade chief has also signalled the bloc's willingness to negotiate a deal. Within the 27-nation EU, Germany has by far the largest trade surplus with the United States. That is mainly because of the German automobile industry and chemical giants. Still, with trump using the zero-sum mentality more as a strategy, hopes for US trade deals with trading partners have risen. 

(With inputs from the agencies)