Trump Isolates China by Making Deals with the Rest of the World

Trump Isolates China by Making Deals with the Rest of the World, by Rick Manning.

President Trump landed a haymaker on Sunday at the previously scheduled G-7 meeting when he announced that the Japanese would replace China’s broken corn purchase promise with $7 billion of agricultural product purchases. The bilateral deal will also allow the U.S. increased access to Japan’s markets for other agricultural goods and some industrial items, and the U.S. will lower tariffs on an array of Japanese produced industrial items, excluding auto parts. …

The multiple billion dollar deal with one of the United States’ closest G-7 allies — Japan has the third largest economy in the world — signals that Trump’s strategy of isolating China to ratchet up the pressure is fully engaged.

However, the Japan trade announcement was likely just the tip of the iceberg from the meeting. With the China-U.S. trade war at the top of the minds of everyone (except host country France’s President Emmanuel Macron), it is safe to assume that conversations with newly minted UK Prime Minister Boris Johnson (fifth largest economy), EU heads of state including Angela Merkel (fourth largest economy) and even a side meeting with India’s Prime Minister Narendra Modi (sixth largest economy) all focused upon bilateral trade with the U.S.