U.S. trade deficits and Trump’s new tariffs: which countries are getting hit the hardest?

U.S. trade deficits and Trump’s new tariffs: which countries are getting hit the hardest?

The U.S. reported major trade deficits in February 2025 with China, the EU, and Mexico—just as President Trump’s latest round of ‘reciprocal’ tariffs took effect. Here’s a breakdown of who’s facing the steepest penalties, and why some key allies like Canada and Mexico are exempt.