If you only read the headlines, it’s easy to believe a trade war could be looming with China and Asia.
In fact, if you believe the rhetoric, you’d take a second look before investing a dime of your hard-earned money in anything related to the region.
But it’s just rhetoric – and misleading rhetoric to boot. Here’s what is really happening …
The Trans-Pacific Partnership (TPP) was set to be the largest regional trade accord in history.
The TPP would have set new terms for trade and business investment among the United States and 11 other Pacific Rim nations: A wide-ranging group with an annual gross domestic product of nearly $28 trillion, representing roughly 40 percent of global GDP and one-third of world trade.
President Trump didn’t like the deal and thinks a more U.S. friendly deal can be made. So his administration is pushing for bilateral trade agreements between these each of these nations in the future.
In other words, getting rid of TPP wasn’t the end of trade negotiations, it was the beginning. There’s going to be a ton of deals coming down the pike.
And a lot of trade talk in China and Asia is going to go that way: Rhetoric and Trump posturing to begin with, deal making in the end.
Then, there’s tax reform and the possibility of President Trump’s administration implementing a border-adjustment tax.