China could be exposed in trade war as US allies choose compromise
Trump pressure on partners pays off as they succumb to the art of the deal
China risks standing alone against the United States in US President Donald Trump’s trade war, with its allies showing signs of compromise, a former American trade official has warned.
Wendy Cutler, vice-president of the Asia Society Policy Institute and a former deputy US trade representative, made the assessment from the sidelines of the World Economic Forum in Tianjin, northeast China, following sustained pressure from Trump on US allies to compromise in trade negotiations.
Trump has touted the success of negotiations with Mexico to revise the North American Free Trade Agreement, while Canada is showing signs it may make concessions in its Nafta talks with the US. In July, meanwhile, the EU and US reached a deal pledging zero tariff and zero barriers on non-car products.
Despite efforts by South Korea and Japan to diversify trade patterns, Seoul is about to sign a trade deal with Washington in the coming weeks and Tokyo, a close ally, is also on Trump’s agenda in trade talks.
“So with all of these trading partners, it looks like the Trump administration is close to finding a path forward, a way to resolve differences,” Cutler said.
