The United States tariffs imposed on the rest of the world and China in particular stem from the “trade deficit” that the US runs with the world.

That is part of the story of trade imbalances however.

With the rest of the world and Europe in particular, the United States runs a trade surplus.

The main sectors are financial services, technology and travel (tourism).

Which is not reflected in the administration’s trade deficit.

The services surplus is about $250+ Billion. If you include that in the overall trade imbalance, then the trade deficit drops to about $700 Billion. Still a lot, but less than $1 Trillion.