The US has 'far less' to lose by embarking on trade war with China

The North American Free Trade Agreement (NAFTA) governs the trading relationship between the US, Canada and Mexico.

This is an important trade deal as Canada and Mexico are the largest single-country export markets for the US.  While Mexico and Canada are the two single largest importers of US goods, their economies are significantly more reliant on US trade than the US themselves are as a percentage of GDP.  For example, 2016 OECD figures show that exports represent 31% of Canadian GDP and 37% for Mexico - this is significantly higher than the largely domestic economy of the US with just 12%. If there were to be no deal, the impact would be largely sector specific as the NAFTA trading terms are...