President Trump began recasting America’s role in the global economy Monday, canceling an agreement for a sweeping trade deal with Asia that he once called a “potential disaster.”
Trump signed the executive order formally ending the United States’ participation in the Trans-Pacific Partnership in the Oval Office after discussing American manufacturing with business leaders in the Roosevelt Room. The order was largely symbolic — the deal was already essentially dead in Congress — but served to signal that Trump’s tough talk on trade during the campaign will carry over to his new administration.
Trump did not directly address the North American Free Trade Agreement on Monday as he had promised during the election. However, he repeated his threat to punish U.S. companies that build factories overseas and ship products back home — a charge he has primarily leveled at automakers with operations in Mexico. And his hard-line opening stance could portend a contentious renegotiation of the 22-year-old deal with Mexico and Canada that Trump’s senior advisers have called a top priority for the new administration.
“This abrupt action so early in the Trump administration puts the world on notice that all of America's traditional economic and political alliances are now open to reassessment and renegotiation,” said Eswar Prasad, trade policy professor at Cornell University. “This could have an adverse long-run impact on the ability of the U.S. to maintain its influence and leadership in world economic and political affairs.”
Read more at the original source of this article: The Washington Post.