By Michael Molinski and Sandra Rodriguez
President Trump has made no secret of his intention to renegotiate virtually every trade agreement that comes before him which violates what he considers in the best interests of America. He has labeled trade agreements with Asia and NAFTA (the North American Free Trade Agreement) as probably the worst trade agreements that the United States has ever made.
Chinese steel, Canadian airplanes, Brazilian orange juice and South Korean electronic components are just a few of the products on the schedule of trade renegotiations still to come.
Foreign companies doing business in the United States have a long and arduous road ahead of them over the next three years, or seven years if Trump is reelected to a second term. The question is what should foreign companies do about it?
Should they fight trade agreements or anti-dumping sanctions against them in U.S. courts? Or should they put pressure on their own governments to renegotiate favorable trade deals? Or should they give up and turn to other countries to purchase their exports? Our recommendation is to pursue all three avenues. Our reasoning for doing so is discussed below.