White House Pursues New Trade Opportunities Amid Conflict with China

The Trump administration is turning to allies in Asia and Europe for trade deals as U.S. relations with China deteriorate and the world’s two largest economies risk damaging global commerce.

President Trump signed a revised free-trade pact on Monday with South Korea, as he steps up efforts to show he can strike new market-opening deals and isn’t antagonistic to trade. Trump also hopes by Wednesday to persuade Japan to enter formal bilateral trade talks, part of a commercial diplomacy effort this week by the president and his advisers on the sidelines of United Nations meetings in New York.

Trump aides also have meetings planned with their European Union counterparts to advance a trade-expanding framework unveiled in July.

“In addition to this deal, we have many other deals in the works—reciprocal deals,” Trump said as he signed the Korea pact.

The moves come as the president escalates his trade fight against China, with new 10 percent taxes on $200 billion in Chinese exports taking effect Monday. Beijing has retaliated with tariffs on $60 billion in American-made goods. The U.S. administration is expected soon to explore penalties on $267 billion more in Chinese products, covering virtually all Chinese goods sold in the U.S.

This week’s efforts coincide with what appears to be a rough patch in the administration’s efforts to rewrite the North American Free Trade Agreement. The administration has been pushing Canada to join by Sept. 30 a new NAFTA framework set last month between the U.S. and Mexico. But talks with Ottawa broke down last week with no resolution on a number of sticking points. No new high-level negotiations were scheduled as of Monday afternoon.

Source: Wall Street Journal