Since U.S. President Donald Trump has made a deal with his North American allies on the revised NAFTA agreement, his administration can now focus his trade war with only one front: China, this according to Christopher Vecchio, senior currency strategist at FXDaily.com. “I think it’s going to get uglier. I think when President Trump comes to an agreement with the EU, when he comes to an agreement with Mexico and Canada, it removes the war on several fronts, he can focus his fire and ammunition in one direction,” Vecchio told Kitco News. Vecchio noted that Trump can now enlist the help of his Western allies to “fight” China. “There are legitimate trade grievances that the United States has [with China] and those can’t really be addressed without the EU’s help,” he said. The analyst said that the new NAFTA deal signed earlier this week did not have a lot of material changes that’s going to impact the U.S. economy significantly, although the Canadian dollar and Mexican pesos reacted to the news.
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