President Donald Trump's demand that China cut its trade deficit with the U.S. by $200 billion in two years is tall order politically.



It also defies the laws of economics.

On Tuesday, the president walked back comments over the weekend from Treasury Secretary Steven Mnuchin essentially calling a "truce" in the emerging trade war with China. The administration has threatened to impose steep tariffs on Chinese goods entering the U.S. unless Beijing engineers a $200 billion reduction in its trade surplus with the U.S. by 2020.



"Last year, we lost $500 billion on trade with China," Trump said, erroneously, at a March 23 news conference. "We can't let that happen."

To begin with, Trump's math is off - by more than $100 billion.