Mohamed A. El-Erian , Columnist

The Next Steps for Trump’s Trade Negotiations

The agreement with Mexico opens the way for deals with Canada and the EU, and a unified stance on China.

August 30, 2018 at 6:00 AM UTC

Mohamed A. El-Erian is a Bloomberg Opinion columnist. A former chief executive officer of Pimco, he is president of Queens’ College, Cambridge; chief economic adviser at Allianz SE; and chair of Gramercy Fund Management. He is author of “The Only Game in Town.”

Announcing the deal with Mexico
Photographer: Al Drago/Bloomberg

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The U.S. reached a preliminary trade agreement with Mexico that addresses several American grievances. A similar deal with Canada appears to be on track. These breakthroughs, combined with an easing of tensions with the European Union, could allow a more coordinated approach to the toughest trade problem of them all: reaching an agreement with China.

This is good news for investors who worry about a global trade war that would derail growth and undermine corporate earnings. But important questions remain. How they are resolved will ultimately determine the extent to which trade policy durably influences growth and asset markets.