Name: Trump’s Disaster Tariffs Only Helped China
Uploaded: 2026-03-13T18:05:50.000Z
Duration: 11 min 8 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

China is the biggest winner out of tariffs.

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Tariffs have been a complete disaster for the US Economy, but the biggest gift China could possibly imagine.

And based on Trump's actions, you can see that there is no clear strategy behind these tariffs.

After the Supreme Court shut down Trump's tariffs, Trump immediately responded with a 10% tariff.

And it's not even 24 hours later he has increased that 10% tariff up to 15% tariff.

Now, how do the US allies should react to this news?

Some of these countries have managed to strike a good deal with the United States, such as the United Kingdom that spent so much time trying to convince Donald Trump to sign a deal where the UK will only pay a 10% tariff to the United States.

Now the question is, will the UK pay a 10% tariff or a 15% tariff?

Trump has invoked Section 122 of the Trade act of 1974 that allows the President of the United States to charge up to 15% of tariffs for 150 days.

The real question is, what is going to happen 150 days later these tariffs are going to expire.

So should other nations come to the United States to sign a trade deal with the US when they know for a fact that 150 days from now these tariffs are going to expire?

Why impose such tariffs when you know for a fact that these tariffs cannot possibly stand for long and you can't even use them as a leverage in negotiations?

So what did the United States get out of these tariffs one year later?

First of all, the United States has successfully ruined its relationships with with the rest of the world.

And the question comes back at the end of the day, did the United States or did these tariffs actually reduce the trade deficit and help the United States to have a more balanced trade with other nations?

If you look at the data, you can see that right after Trump imposed the tariffs, imports have increased substantially because these countries or these companies suddenly realized that we have to import so much into the United States since later, a few months down the road, we will have to pay these hu tariffs, which is why the imports have substantially increased.

But then right after that, you can see that these tariffs actually had a real impact on the trade balance.

And the trade balance actually hit the bottom by October of 2025.

But since most of these tariffs will be lifted right now, the trade balance is going to go back to the exact same level as it has been before Trump implemented these tariffs.

Though essentially these tariffs did not help the trade bal all.

Thirdly, the United States right now owes about $175 billion to American businesses that paid these tariffs over the last year.

Now, how will the United States pay these tariffs to begin with?

Well, the United States is the wealthiest economy in the world, and

it collects over $5 trillion in tax revenues.

But you know what else the US government does?

It runs the largest deficit in the world.

I don't mean the trade deficit, I mean the government's deficit, where the US Government spends more than it earns.

Last year, that number was $1.9 trillion.

And since the United States government was expecting that this year we are going to receive hundreds of billions of dollars in tariff revenue, that is not happening.

Which means that the deficit is going to substantially rise.

Now, secondly, because the US Government now has to pay American businesses back the tariffs that it has collected, the deficit is going to substantially rise, at least by $175 billion that the US government now owes to these small businesses.

And if the deficit is growing, the that means that the national debt is going to grow way even faster than it has been growing previously.

Because where else the US Government is going to take that money from?

Remember, the US Government has two main sources of revenue, or I would say that it has only one main source of revenue, which is taxes.

And this is primarily the income tax that you pay and the payroll tax.

But when this money or this revenue is not enough to cover the entire budget of the government, the government turns to American people or to the rest of the world and starts raising money.

Because the US Government believes that if it's going to raise that money and invest it in the United States, the US GDP is going to grow way faster than the interest that it has to pay on this debt.

Then these debts are actually making sense.

So because of these tariffs, the deficit is going to substantially rise this year.

The government will have to borrow even more money to ensure that it can actually meet its obligations.

The real question is that why is it a gift to China?

Why is China so happy with Trump's tariffs?

Why is China so glad that Trump actually imposed these tariffs?

Well, first of all, it did not actually hurt China.

Last year, China's total trade surplus was $1.2 trillion.

This is the highest recorded surplus ever achieved by any country.

So Trump's tariffs did not slow down China, but

at the same time, now these tariffs no longer exist, which means that China can now trade with the United States just like it was before Trump became the president.

There is also a free trade agreement between the United States, Canada, and Mexico.

And because Most imports from Mexico fall under this agreement.

China has been building factories all across Mexico, which means that now China can simply sell in the United States States through Mexico because of this free trade agreement.

Now, because these tariffs have drawing the relationship between the United States and its closest allies that allowed the US Companies to dominate these markets, these countries have reset the trading relationships with China.

It is trading relationships with China now.

You'll see more Chinese business in the uk.

Well, previously the UK closed its doors for China and was the closest ally to the United States.

Because the United States, or Donald Trump, I would say in particular, has forced the European Union to sign a trade agreement that is way worse than they could possibly imagine.

Now, another ally of the United States that is also moving closer to China is Japan.

Japan has always been, it's literally like, you know, another state of the United States.

But now even Japan is moving closer to the United States.

Up until recently, the world would look at the United States as the leader of the free trade.

But after 2025, now in 2026, nobody in his own mind is going to call the United States the leader of the free trade.

In fact, the average tariff last year in China was 6%, while the average tariff in the United states has been 15%.

And that includes everything, even the free trade agreements that the United States had with Mexico and Canada.

China manufactures a lot of goods much more efficiently than the United States.

And Western markets have been very careful with China because if China is now going to jump all of their EVs into Canada, the European Union and UK American companies such as Tesla are not going to stand a chance.

Which is why Canada does not actually manufacture EVs.

And yet they hit 100% tariff on Chinese EVs.

And that allowed US companies to dominate the Canadian market.

But what happened a few months ago, the Canadian Prime Minister flies to China and signs a trade deal and that allows the Chinese EVs to be sold in Canada and that number will be substantially rising every single year.

So Trump's tariffs basically opened new markets for China, while it did not achieve anything for the United States besides just growing the national debt and the government's deficit.

When the government is running a deficit at first, it might not actually seem like a big deal, but.

But it's massively contributing to the rising national debt.

And that national debt should be paid one way or another.

There are two ways that you can actually pay that debt.

One is basically you start cutting your expenses and you dedicate a small amount of your annual income into paying off the national debt.

Just like if you're droning in debts and you're making money, what you do is that you lower down your standard of living and you start paying off a portion of your income into that debt.

This option is not available for the average American, but this option is available to the American government.

Because the Federal Reserve has the power to print money.

What the Fed can do is that it can just print money and buy that national debt from the open market, from other investors.

And now the government of the United States will owe that money to the Federal Reserve.

And because the Federal Reserve is actually part of the government, even though that they don't actually admit and they say that the Fed is independent.

The job of the Fed to stabilize the American economy.

It is independent, but its job to protect the American economy.

So if the government owes that money to the Federal Reserve, then it's no longer a big problem for the U.S.

But for the Federal Reserve to do that, the Fed has to print money to buy all of these Treasuries out of the market.

Which means that there is massive inflation coming, there is massive devaluation of the dollar.

And when that happens, what do you think is going to happen to your wages and your savings?

Now, your wages are not going to rise as fast as inflation and your savings are substantially going to lose their value.

Which is why if you have not started investing yet, you should start as soon as possible.

Because we're entering the danger zone where the United States or the Federal Reserve might actually have to bail out the United States government because of the rising national debt.

And if you want to know, or you want a step by step instruction on how you get started and which stocks you should be buying, then check out the first link in the description of this video.