Published: Thu, July 26, 2018
Money | By Ethel Goodwin

Trump, EU trade deal averts trade war, tariffs

Trump, EU trade deal averts trade war, tariffs

The sides will "hold off" on other tariffs while negotiations proceed, Juncker said, amid Trump's threat of new tariffs on cars and auto parts from the EU.

Trump told reporters it was a "very big day for free and fair trade" and vowed to "resolve the steel and aluminum tariff issues and we will resolve retaliatory tariffs". He said the USA will be making it easier for the E.U.to do so in order to "diversify their energy supply, which they want very much to do".

U.S. Rep. Frank Lucas, a Cheyenne Republican who represents Oklahoma's agriculture-reliant western half, says President Donald Trump was right to compensate the farmers and ranchers who are casualties in a trade war the president started months ago. The big dispute is over cars, with Mr. Trump threatening massive tariffs on if for the European Union didn't lower high tariffs on cars.

The U.S. Department of Agriculture is trying to ease some of farmers' pain during the trade war. Trump and Juncker said they have agreed to work toward "zero tariffs" and "zero subsidies" on non-automotive goods. China alone imported $12.3 billion of U.S. soybeans past year, according to the U.S. Department of Agriculture.

Trump and Juncker took no questions after their brief remarks in the Rose Garden, an impromptu appearance scheduled after about three hours of talks.

"Back in the really dry years we had subsidies, and it kept a lot of farmers going to catch their interest up or something like that, it never was enough to pay off any debt, but it was enough to survive", Badger said.

The truce may prove to be short lived if the two sides can't resolve their differences over trade in vehicles and auto parts.

The United States earlier this month imposed 25% tariffs on $34 billion worth of Chinese products, drawing a tit-for-tat response from Beijing, which targeted politically sensitive U.S. agricultural products. According to Agriculture Secretary Sonny Perdue, this is a "short-term solution that will give President Trump and his administration time to work on long-term trade deals". The leaders are also working to resolve the steel and aluminum tariffs.

In the first acknowledgment by President Donald Trump's administration that his aggressive trade actions are hurting Americans, the government on Tuesday announced $12 billion in aid for farmers who have been the primary targets of retaliation.

Germany's economy minister described the agreement - which means Washington will not follow through with a threat to impose tariffs on autos that would hurt the dominant German vehicle industry - as a "breakthrough" that "can avoid trade war".

Juncker came to Washington for a last-ditch bid to avoid US tariffs on cars.

Earlier Tuesday, the president praised tariffs in a tweet.

The US President often reaches out to make close contact with world leaders and was filmed holding hands with Prime Minister Theresa May during his visit to the United Kingdom last week.

Trump could impose the 25 per cent vehicle tariffs on national security grounds once Commerce Secretary Wilbur Ross completes a required investigation, which could come anytime before a deadline by early next year. Trump could impose vehicle tariffs on national security grounds once Commerce Secretary Wilbur Ross completes a required investigation, which could come anytime before a deadline by early next year.

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