Trump, top European leader agree to work toward zero tariffs

Adjust Comment Print

And the United States is still locked in trade war with China.

After meeting European Commission President Jean-Claude Juncker at the White House on Wednesday, Trump agreed to refrain from imposing auto tariffs while the European Union and the United States start talks on cutting other trade barriers.

Trump also said the European Union had agreed to buy "a lot of soybeans" and increase its imports of liquefied natural gas from the U.S. And the two agreed to resolve a dispute over U.S. tariffs on steel and aluminum.

Trump has placed tariffs on imported steel and aluminum, saying they pose a threat to USA national security, an argument that the European Union and Canada reject. Consequently, "We're certainly concerned" about the tariffs, Lindsey said.

Trump was travelling to Iowa and Illinois Thursday in which his trade agenda was expected to be a leading issue. On Tuesday, his administration said it would use a Depression-era programme to pay farmers up to $12 billion, easing the pain for a politically important Trump constituency.

"If the West is not nipping at each other, they can turn toward China", said Timothy Keeler, a lawyer and former chief of staff for the U.S. Trade Representative.

The tone was friendlier than it has been. During a recent European trip, Mr Trump referred to the EU as a "foe" over "what they do to us in trade".

But he also cautioned that the United States is watching China's currency movements for any sign Beijing is manipulating the yuan.

"This is why we agreed today, first of all, to work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods", it stated.

Trump also won a commitment from Juncker to work together to reform the World Trade Organization to address some of his complaints about China on theft of USA technology, the behavior of state-owned enterprises, and overcapacity in steel.

The agreement was welcomed by political and business leaders in Germany, the EU's biggest economy, though their relief was tempered with caution that details have to be firmed up. He said the Trump-Juncker accord was "a good start - it takes away many people's worries that the global economy could suffer serious damage in the coming months from a trade war".

The president campaigned on a vow to get tough on trading partners he accuses of taking advantage of bad trade deals to run up huge trade surpluses with the US.

Trump lashes out at Cohen over hush money tape
The other recordings are of conversations in which Cohen mentions the president to someone else, Giuliani said. In addition, Trump's attorneys have not claimed the recording is a privileged attorney-client conversation.

A gauge of European companies in the automobiles and parts sector rose as much as 2.4 percent on Thursday, as the threat of punitive levies on exports to the USA abated.

The U.S. steel and aluminum tariffs remain in place.

Russia's Gazprom PJSC, which provides more than a third of Europe's natural gas through pipelines from vast and cheap-to-operate Siberian fields, has repeatedly said US supplies will just be "drops".

The escalating trade war and tariffs on steel and aluminium had put pressure on vehicle company earnings.

Agricultural equipment makers Deere & Co. and Agco both advanced, but General Motors, Ford and Fiat Chrysler all fell. But Trump later reversed course and said the United States would impose a 25% tariff on $50 billion of Chinese exports.

President Donald Trump is calling China "vicious" on trade and says it is targeting US farmers specifically because "they know I love & respect" them. The EU has been readying retaliatory taxes on US products.

But an European Union official told reporters it will be up to the markets to decide whether to buy more U.S. goods.

Mary Lovely, a Syracuse University economist who studies trade, said, "The Chinese are not going to be buying our soybeans, so nearly by musical chairs our soybeans are going to Europe".

Since then, each side has imposed tariffs on $34 billion of the other's imports, and they've threatened to go further.

It was essentially a deal to make a deal, announced in celebratory fashion during a previously unannounced appearance in the White House Rose Garden.

"I'm not going to sit down until this person is off the plane", the 21-year-old says in the video, which has gone viral and been viewed at least 2.7 million times on Facebook. Pat Roberts, R-Kan.

Comments