President Trump is seriously considering a withdrawal from the U.S.-South Korea free-trade agreement that went into effect in 2012, a source familiar with the situation tells Axios.

Why it matters: Ending the agreement could initiate a trade war with South Korea, an important U.S. ally in the face of rising North Korea tensions, and is opposed by top Trump advisors, per the Washington Post.

  • National Association of Manufacturers members received an "alert" this morning that Trump was preparing to withdraw and were asked "to weigh in as soon as possible" with administration officials and lawmakers, per the Wall Street Journal.
  • U.S. Trade Representative Robert Lighthizer noted the U.S. trade deficit with South Korea doubled to $27.6 billion since 2012, per WaPo.
  • There was $112.2 billion in trade between the U.S. and South Korea, America's sixth-largest trading partner, in 2016.

WSJ reports Trump will meet with advisors on Tuesday to discuss the potential withdrawal further.

Go deeper

12 mins ago - World

Europe faces "stronger and deadlier" coronavirus wave

Paris under curfew. Photo: Kiran Ridley/Getty Images

The coronavirus is still winning: Now even Germany is entering another national lockdown, joined by France.

Why it matters: France has been "overpowered by a second wave,” President Emmanuel Macron said in a nationally televised address today. Macron said the "new wave will be stronger and deadlier" than the first.

Stocks close down more than 3%

Photo: Alexi Rosenfeld via Getty Images

Stocks took a hit on Wednesday, with the S&P 500, Dow Jones Industrials Average and Nasdaq dropping more than 3% across the board.

Why it matters: The volatility is a break from the stock market grinding higher in the face of spiking coronavirus cases, a stalling economy and gridlocked negotiations over an additional stimulus package.