Trade War Between US and EU Averted (For Now)

President Donald Trump and European Commission president Jean Claude Juncker in the White House Rose Garden

President Donald Trump with European Commission President Jean Claude Juncker at the White House. CREDIT Pablo Martinez Monsivais AP Shutterstock

EU officials said little had been given away by Juncker and that Europe had emerged as the victor by getting Trump to defer the threatened auto tariffs which would have hit European carmakers hard. Trump could impose auto 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. "It starts with us, but then it will obviously trickle down to equipment purchases, other input purchases that we have on our farm". As long as Germany is less interested in fighting this war than France because of the importance of its USA exports, the European Union is hamstrung in its decision-making.

"Congrats to @JunckerEU, @realDonaldTrump: Breakthrough achieved that can avoid trade war & save millions of jobs! Everybody said, 'Uh, can we get onto another subject?'" Trump offered to eliminate all trade barriers - and his supposedly pro-free-trade allies passed.

In Dubuque, Trump described the agreement as "no tariffs, no nothing, free trade".

According to Wall Street Journal, the key elements of the agreements reflect the offers developed by European Union officials two months ago in hopes that Trump would not introduce tariffs on steel and aluminum import from the EU.

The 25 percent tariff on steel and 10 percent tariff on aluminum, which took effect in June, have driven up costs sharply as domestic producers raise prices. Which is not, we'll just point out, in America.

Whatever progress was achieved Wednesday could provide some relief for U.S. automakers.

He said the administration is now focused on resolving the steel and aluminum tariffs.

The European Commission said on Wednesday (11 July) that "all possible options" are on the table to respond to the confirmation of the United States tariffs on Spanish ripe olives, seen by the Europeans as "not justified".

On July 6, the USA government levied high tariffs on $34 billion of Chinese imports.

China has counterpunched with tariffs on American products, including soybeans and pork - a shot at Trump supporters in the United States heartland.

The impact has fallen mainly on US farmers and Republican party lawmakers. "We're going to make it much easier for them, but they're going to be a massive buyer of LNG, so they'll be able to diversify their energy supply, which they want very much to do. And the European Union is going to start, nearly immediately, to buy a lot of soya beans", Mr Trump told reporters after the meeting. But in terms of protecting American workers, the concessions are pitiful, and in no way undo the damage that Trump has already done.

"The idea that imports of steel or aluminium from your closest ally could threaten the national security of this country [as Trump had claimed] - this goes against all logic and against all history", Juncker said. Pat Roberts (R) of Kansas. He says consumers could see prices increase within the next few months.

He has long complained that the WTO has been unfair to the United States, despite the fact the U.S. has won most of the disputes against China and others.

"Suddenly, Trump came out into our group and asked, 'So, where are we now?"

United States exporters until now have sent most gas to Asia and Latin America.

Last week, critics from the auto industry lined up at an all-day hearing with the Commerce Department to urge the administration to reject auto tariffs.

"It's just a big nothingburger", Dan Ikenson, director of the Cato Institute's Center for Trade Policy Studies, told Reason. "We are not going to turn into a Soviet style economy" that can order up more imports, the official said.

This story was reported by The Associated Press.

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