It makes sense in the short term that the more we buy in the US the more the trade deficit would grow with China, and as the US economy has heated up, we're obviously buying more, tariffs notwithstanding.
I had a conversation with Mrs. McBadgerton yesterday about Chinese tariffs. She works for a relatively small company (couple billion+ in sales) that mainly sources from China/Asia, to which she will be traveling again in a few weeks. Their Chinese vendors have been asked to absorb existing tariffs, and further, asked to absorb any future tariffs up to 25%. The Chinese expect currency manipulation to account for about 5% and the remaining 20% they have all, so far, agreed to absorb. So in these cases and under those conditions, American consumers are going to pay $0 more for Mrs. McB's products. Assuming her company's US sales grow, they will buy even more from China which will, of course, contribute to an increased trade deficit, however the US Treasury will be pocketing up to 25% on every transaction. At this level at least, and in this industry, it doesn't appear to be negatively affecting the US at all, but rather the Chinese will be financing cash into the US treasury. I was a bit surprised by that.