Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Factbox: Trump has upended relationships with nine of 10 top U.S. trading partners

Published 2019-12-03, 05:09 p/m
Updated 2019-12-03, 05:09 p/m
© Reuters. U.S. President Trump meets with NATO Secretary General Stoltenberg, ahead of the NATO summit, in London

WASHINGTON (Reuters) - During his election campaign in 2016, U.S. President Donald Trump promised to shake up global trade and bring down America's growing trade deficits.

Now relationships with all but one of the United States' top ten 2018 trading partners has been thrown into uncertainty, and there is no clear roadmap for when new trade agreements may be finalized. https://tmsnrt.rs/2LifgH6

CHINA

The United States has been embroiled in a tit-for-tat trade war for 17 months with its once-largest trading partner. Trump said Tuesday https://www.reuters.com/article/us-china-trade/trump-says-china-trade-deal-might-have-to-wait-for-2020-election-idUSKBN1Y7134 he had "no deadline" for the deal, and that he likes "the idea of waiting until after" the U.S. 2020 presidential election, sending stock markets tumbling.

U.S.-China bilateral trade accounted for 15.7% of U.S. trade in goods during 2018, when it was the largest U.S. trading partner. U.S.-China trade has since shrunk to third place behind that with Mexico and Canada, making up 13.5 percent of total trade in 2019 through September.

MEXICO AND CANADA

The Trump administration renegotiated the North American Free Trade Agreement with its neighbors in 2018 https://www.reuters.com/article/us-trade-nafta/in-trump-win-canada-us-deal-saves-nafta-as-trilateral-pact-idUSKCN1MA0UJ.

But the deal has yet to be passed by the U.S. Congress, where Democrats want for more protections for workers and changes that may lead to cheaper drug prices, leaving the future of the three-country, $1.2 trillion open trade zone uncertain.

EUROPEAN UNION

Trump has threatened to impose tariffs of up to 25% on auto imports from the European Union. Trump missed a deadline https://www.reuters.com/article/us-usa-trade-autos/trump-can-no-longer-impose-section-232-auto-tariffs-after-missing-deadline-experts-idUSKBN1XT0TK to decide on the tariffs, but has not withdrawn his tariff threat as negotiations fail to gain traction.

Separately, the USTR said Monday it would review raising tariffs on more EU products, without specifics, after the World Trade Organization affirmed that aid to planemaker Airbus continues to harm the U.S. aerospace industry. And The U.S. Trade Representative's office unveiled a $2.4 billion tariff list of imports from France, including cheese, handbags and Champagne, as punishment for France's new digital services tax.

The EU was America's top export market in 2018, with purchases of $319 billion in U.S. goods and $256 billion in U.S. services. EU members Germany, France, Britain and Italy were among the top 10 U.S. trading partners in 2018.

JAPAN

Trump and Japanese Prime Minister Shinzo Abe signed a limited trade deal in September that would grant more access to Japan for some $7 billion in U.S. agriculture products, including beef and pork, in exchange for lowering U.S. tariffs on some industrial goods. But the deal did not include autos, the biggest source of the $67 billion U.S. goods trade deficit in 2019.

Although Abe says he has been assured that Japan will not face car tariffs as Washington and Tokyo resume negotiations next year, Trump has not eliminated the threat of such duties.

INDIA

The United States in July eliminated India's trade benefits under the Generalized System of Preferences, affecting some $5.6 billion worth of exports, amid disputes over India's new digital trade restrictions and alleged trade barriers for U.S. medical devices and other products.

Negotiations to resolve the issues and lower some of India's high tariffs for farm goods, motorcycles and industrial goods, have failed to result in an interim deal thus far.

SOUTH KOREA

© Reuters. U.S. President Trump meets with NATO Secretary General Stoltenberg, ahead of the NATO summit, in London

The only completed and implemented trade deal that Trump's administration has negotiated has been a minor revamp of the U.S.-Korean Free Trade Deal last year. The deal allows the United States to maintain its 25% truck tariff for another 20 years instead of phasing it out in 2021, while reducing some Korean regulatory barriers to car imports from the United States.

Latest comments

He's working for the US citizens, Russians , Saudies and Isreal . Everything he does is related to the stock market. He's making $ for himself and some of his buddies he's prob in debt to lol or owes money to. He's made some investors rich and others poor. Problem is he's so out of the blue and unpredictable at times lol.
right on. Trump said trade wars were easy to win. he hasn't won any yet.
Trade is 8% of americas GDP. It's double, if not more, for all those trading partners. (60% in Germany case). The world needs americas market more than America needs the world's market. Trump knows his position.
Whats products are completly made in america that they export to germany?
good question, I would like to know
Trumps an idiot. The world is waiting for this clown to be terminated.
right on. Trump said trade wars were easy to win. he hasn't won any yet.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.