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The Trump administration is taking the first steps toward a trade war, targeting a trade deal it says would put American workers at a disadvantage when they sell goods to countries like China.
The administration is moving to withdraw from the 12-country Trans-Pacific Partnership, or TPP, as soon as it concludes a trade-related chapter that is “irrelevant or inconsistent with” the president’s priorities.
Trump’s action is only the first step of the long process to withdrawal from the deal and “renegotiate” it.
“Trade agreements often create barriers to U.S. products, hurting American jobs and stifling our economic growth and opportunity,” the president said in a news release. He warned that if the deal “goes forward as is, it will cost American hard-working Americans their jobs and opportunities. That’s why I am withdrawing from the Trans-Pacific Partnership, which will have negative, long-term effects on our economy. If we fail to renegotiate the agreement as part of an expedited process, Congress will have no choice but to reauthorize the agreement.”
The “renegotiation” will begin with what Trump has called a “clean slate.”
“This new process will include a fair and balanced negotiation of a new trade agreement and an orderly, transparent renegotiation of existing trade agreements,” the White House said in Wednesday’s statement.
The White House did not provide details.
Trump, working with congressional Republicans whose hands are tied by the GOP legislative calendar and the need to pass other major legislation to keep the government running in October, is seeking to “make good” on his campaign promises to renegotiate or scrap major trade laws. The administration has sought a renegotiation through a fast-track authority under which Congress gives the president fast-track authority to negotiate trade deals during the first three months of his presidency and a two-year extension to negotiate them.
Trump also said “we will create new rules, regulations and policies to cut down on our deficit.”
On Wednesday, the White House said that U.S. exports to Japan could be slashed because a TPP-based agreement would
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