U.S. President Donald Trump’s plan to raise import barriers and scrap free-trade deals raises the risk of a bruising trade war. More than 60 per cent of all American trade is conducted with just seven nations.
Responding to Trump’s threat to trade relations — an order that has prevailed since the end of World War II — some American trading partners are already looking for new sources of trade and investment. Many are looking to China to fill the leadership vacuum in world affairs.
Jeroen Dijsselbloem, president of the 19-member Eurogroup, responded to Trump’s threats by saying “Chinese involvement in Europe regarding investment is already very high and expanding. If you push away your friends, you mustn’t be surprised if the friends start looking for new friends.”
On January 25, German Chancellor Angela Merkel spoke with Premier Li Keqiang of China. “The two discussed free trade and a stable world trade order,” a German government spokesman later said in a written statement.
Graphic shows trade facts between U.S and its seven biggest trade partners.
