Conversely, China exports more than it imports, runs more modest national government deficits and enjoys a current account surplus of about 2 to 4% of its GDP. Without reducing the federal deficit or putting the skids on U.S. investment and growth, Mr. Trump can’t reduce the trade deficit with just tariffs.

The move shows even China's "no limits" partners are "averse to becoming a dumping ground for Chinese excess capacity," one analyst said.