Trump's Trade Swagger Leaves Markets Unimpressed

There was much goodwill during President Donald Trump's Asian tour. He was greeted warmly by Prime Minister Shinzo Abe of Japan and became the first U.S. president to be the guest of honor at a state dinner in Beijing's Forbidden City. Markets were less impressed, however, and noted that Trump received no trade concession from either Asian power.

Trump said repeatedly during the presidential campaign that the large trade deficit was proof the U.S. was being unfairly treated, and he vowed to correct the situation. The specific path the administration adopts to improve the trade balance --- whether through mutually beneficial trade accords, or by imposing new restrictions on imports --- will have vastly different outcomes for U.S. multinationals and investors.