President Trump's first renegotiated trade agreement will likely be with Japan. This is because:
1. Japan is our most important ally in the Pacific Region, and it depends on the US being a counterweight to Chinese influence.
2. Japan's economic interests closely align with US interests, so it will be relatively easy to come to a new trade agreement. This will probably involve Japan's agreement to stop selling its own US bonds and start buying Chinese held bonds in order to stabilize US debt payments.
3. The trade agreement with Japan will be used as a template for other trade negotiations. This will allow the US to include provisions which will have little effect on Japan but will give the US more cards to play when negotiating with other countries.
Questions/comments?
1. Japan is our most important ally in the Pacific Region, and it depends on the US being a counterweight to Chinese influence.
2. Japan's economic interests closely align with US interests, so it will be relatively easy to come to a new trade agreement. This will probably involve Japan's agreement to stop selling its own US bonds and start buying Chinese held bonds in order to stabilize US debt payments.
3. The trade agreement with Japan will be used as a template for other trade negotiations. This will allow the US to include provisions which will have little effect on Japan but will give the US more cards to play when negotiating with other countries.
Questions/comments?
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