The US may have to consider whether to trade with China in the event of a trade war with China.
According to a report by the US National Association of Manufacturers, the US trade deficit with China is set to reach $1.2 trillion this year.
The report notes that the US already has an $8.5 trillion trade deficit.
The NAOMI says that the gap between the US and China in 2017 was $4.2 billion.
That means the US is going to have to trade $4 trillion more to get its fair share of the Chinese economy.
China imports nearly two-thirds of the US’s exports and imports a large part of its manufactured goods.
With the US trading with China at a significant discount to what it should, that will create an enormous incentive for the US to export more to China.
The NAO report also notes that manufacturing exports to China were up by almost 1.3 million jobs last year.
As a result, manufacturing exports from the US totaled $2.1 trillion last year, according to the NAOMG.
The US and the EU have been negotiating on a number of trade agreements over the past few years, including a Transatlantic Trade and Investment Partnership.
If the US can get its way on a deal with China, that could be good news for US manufacturers.