President Trump says the Chinese tariffs are a response to trade deficits, and the flow of fentanyl into the US The United States runs a trade deficit with the European Union, which means it imports more from European countries than it sells to them.

Singapore’s top diplomat said he doesn’t expect to the wealthy island nation to be in the firing line for US tariffs even as President Donald Trump shows he’s willing to target other friendly nations including Mexico and Canada.

The world’s two largest economies did not strike a deal to avert sweeping U.S. tariffs, which came into effect after midnight. Beijing immediately retaliated.