Trump, EU leader pledge to cut trade barriers, hold off on further tariffs

By Steve Holland and David Lawder

 

European Commission President Jean-Claude Juncker and U.S. President Donald Trump speak to the news media in the Rose Garden of the White House in Washington, U.S., July 25, 2018. REUTERS/Joshua Roberts

 

WASHINGTON (Reuters) - U.S. President Donald Trump and the European Union's chief executive, Jean-Claude Juncker, agreed on Wednesday to work toward eliminating trade barriers on industrial goods, as Trump appeared to give ground on his threat to impose car tariffs.

 

The agreement to pull together a "high-level working group" to negotiate the tariff, subsidy and non-tariff barrier reductions could reduce fears of an escalating transatlantic trade war launched by Trump's tariffs on steel and aluminum and a threat to impose a 25 percent tariff on imported cars and auto parts.

 

News of the agreement helped global stocks extend their recent rally.

 

Trump and Juncker said after a White House meeting that they agreed to hold sweeping trade talks that also cover increased European purchases of American soybeans and liquefied natural gas (LNG) and reducing barriers to transatlantic trade in services, chemicals, pharmaceuticals and medical products.

 

They also said they would cooperate to reform the rules of the World Trade Organization.

 

But Trump agreed to "resolve" existing U.S. tariffs on European steel and aluminum as well as Europe's retaliatory tariffs against American motorcycles, bourbon and other products.

 

Juncker said that while negotiations were taking place on those issues, both sides had agreed not to impose new tariffs, including those threatened by Trump on autos and auto parts.

 

"As long as we are negotiating, unless one party would stop the negotiations, we will hold off further tariffs," Juncker said. "And we will reassess the existing tariffs on steel and aluminum."

 

Trump's threat to impose tariffs on auto imports would hit European carmakers BMW <BMWG.DE> Daimler <DAIGn.DE> and Volkswagen <VOWG_p.DE> hard, as well as Japanese and South Korean car companies.

 

The Commerce Department could recommend new tariffs as early as September after an investigation into whether car imports posed a risk to U.S. national security.

 

The two leaders did not specifically mention car tariffs in their statements, keeping the focus on other industrial products.

 

"We agreed today, first of all to work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods," Trump told reporters at the White House.

 

The Commission briefed EU countries last week on the bloc's possible response to car tariffs, saying in theory it could hit 9 billion euros of U.S. goods, according to EU sources.

 

(Reporting by Steve Holland and David Lawder; Additional reporting by David Shepardson and Johan Ahlander; Writing by David Lawder in Washington and Philip Blenkinsop in Brussels; Editing by Will Dunham and Peter Cooney)

 

-- © Copyright Reuters 2018-07-26

 

This is a good sign for those of us who believe in Trump.  Did not take the EU long to want to sit down and talk. Trump is not poliltical correct but who needs political correct leaders. People need leaders who put their country and citizens first. Trump is the man and should be the template for all further US leaders.

Sorry, but given Trump's track record on promises and follow up behavior..... I don't put much faith in him keeping his word. Someone will put a bug in his ear and we'll be off to the races again.

"You gotta know when to hold them and know when to throw them". The art-of-the-deal man just tossed his cards. His threats failed. And he knew he was failing for sure when members of his own party grew a pair and started speaking out against tariffs.

This is definitely a good sign for those of us who DON'T believe in Trump.

And good for the American economy too as tariffs would have done much damage to the country's citizens and business community.

Very nice to see that he doesn't have as much power as he thinks he does.

But of course, he and his supporters will spin it to look like a Trump win.

2 hours ago, webfact said:

News of the agreement helped global stocks extend their recent rally.

What a load of crap.

 

The agreement was made and announced at a time that markets worldwide were closed already.

21 minutes ago, lovelomsak said:

This is a good sign for those of us who believe in Trump.  Did not take the EU long to want to sit down and talk. Trump is not poliltical correct but who needs political correct leaders. People need leaders who put their country and citizens first. Trump is the man and should be the template for all further US leaders.

V. Putin agrees with you.

The worlds most well known 2 faced draft dodging coward getting more attention. 

Lets hope after he leaves he doesnt denigrate the eu leaders.

He lacks the backbone to do it face to face I suppose

3 minutes ago, tomas557 said:

What a load of crap.

 

The agreement was made and announced at a time that markets worldwide were closed already.

markets worldwide have a wide rannge of times, even the day isn’t the same. markets worldwide were open and still are at the time of my post. 

4 minutes ago, tomas557 said:

What a load of crap.

 

The agreement was made and announced at a time that markets worldwide were closed already.

 

Did you ever hear of after hours trading?

https://www.investopedia.com/terms/a/afterhourstrading.asp

43 minutes ago, tomas557 said:

What a load of crap.

 

The agreement was made and announced at a time that markets worldwide were closed already.

You sure about that?

I went here

https://factba.se/topic/calendar

to see Trump's schedule.

It looks like the meeting happened with plenty of time to spare for the markets still being open at its conclusion.

Then I went to see how the S&P 500 performed on that day. There was a spike upwards at about 15:30.

But doubtless you have evidence that will show me where I went wrong with my data. I look forward to seeing it. I mean, it's clearly very likely that the world media got it universally wrong and you got it right.

Troll post removed.  

They agreed to negotiations hopefully it’s a good sign I think trump is probably bowing to pressure let’s not have a repeat of 1929 ok folks!!

Bowing to pressure? The EU made concessions, Trump doesn’t want a trade war, he is negotiating for fairer trading agreements. 

So, in theory, they could negotiate for decades and there would be no new tariffs. My guess that the EU will stall/negotiate until Trump is out of office. Seeing as both sides subsidize their agriculture to the tune of 24 billion a year (and that is a large part of Trump's base) I will not hold my breath on the "ending subsidies" talk.

8 minutes ago, bushdoctor said:

Bowing to pressure? The EU made concessions, Trump doesn’t want a trade war, he is negotiating for fairer trading agreements. 

What concessions were those exactly?

1 minute ago, bristolboy said:

What concessions were those exactly?

I think he’s referring to the EU agreeing to remove their retaliatory sanctions on the US.

 

The power of a trading block.

Sounds very nice, but with Trump there is no reliability. Tomorrow he may talk different again.
At the moment he desperately needs good news, with all the dirt in his domestic and foreign policy, now increasingly boiling up.
He does not care if it's Kim or Junker, as a vehicle for good news. Trump also notes that soy farmers, many of them his constituents, are increasingly in economic distress due to his trade war. 
Let's see what is being negotiated there. When it comes down to it, the orange clown will perform an angry dance again, if he is still in office until then.

All this winning! MAGA! Go Trump! They have a choice to fair trade with the US or TARIFFS, let them choose!

3 hours ago, lovelomsak said:

This is a good sign for those of us who believe in Trump.  Did not take the EU long to want to sit down and talk. Trump is not poliltical correct but who needs political correct leaders. People need leaders who put their country and citizens first. Trump is the man and should be the template for all further US leaders.

A template for all further US Leaders?

A morbid, chronic liar who insults God and the world. A president who constantly changes his mind, who has no expertise, who is only interested in his own advantage and burns his companions for that. A president with limited dementia ability to speak and think.
No thank you.

2 hours ago, bristolboy said:

3 hours ago, tomas557 said:

What a load of crap.

 

The agreement was made and announced at a time that markets worldwide were closed already.

You sure about that?

I went here

https://factba.se/topic/calendar

to see Trump's schedule.

It looks like the meeting happened with plenty of time to spare for the markets still being open at its conclusion.

Then I went to see how the S&P 500 performed on that day. There was a spike upwards at about 15:30.

But doubtless you have evidence that will show me where I went wrong with my data. I look forward to seeing it. I mean, it's clearly very likely that the world media got it universally wrong and you got it right.

At 15.30 New york time all major world markets are closed already, even the aftermarket hours have been passed already, but I'm sure you can proof me wrong.

12 minutes ago, tomas557 said:

At 15.30 New york time all major world markets are closed already, even the aftermarket hours have been passed already, but I'm sure you can proof me wrong.

I read the article again. This time more carefully. It didn't say global stock markets.It said global stocks.

"News of the agreement helped global stocks extend their recent rally."

ADRs anyone?

You are welcome to perceive it your way, but realize the steel tariff is still in place. Prior to this the EU wasn’t interested in negotiations. 

3 minutes ago, bushdoctor said:

You are welcome to perceive it your way, but realize the steel tariff is still in place. Prior to this the EU wasn’t interested in negotiations. 

Given the partiality of your statement, it seems that you're not aware that the European retaliatory tariffs are also still in place. 

29 minutes ago, bushdoctor said:

Prior to this the EU wasn’t interested in negotiations. 

True in reaction to the unilateral inappropriate manner that Trump put forward - new tariffs imposed due to "national security" and not for economic purposes.

The EU as well as all nation members in WTO are always open to trade changes negotiated in accordance to the WTO's regulation and rules. What the EU has done is "channeled" Trump's tariff war into WTO trade negotiation processes as the US is required by its membership to do so. Such process is not designed for quick solutions that might frustrate Trump who likes quick wins to prove how great he is.

Same applied to Trump's "tariff war" with Mexico and Canada where trade negotiations are mandated through the processes mandated by NAFTA. 

Fortunately, Trump has a competent Secretary of Commerce to translate Trump's economic fantasies into reality. But the question will remain if and when Trump takes advice from FOX and Friends, alt-right advisors, etc. or follows instead his "gut" to go rogue on trade negotiations.

It's the same old Trump- he articulates a problem- imbalance on trade and a large balance of trade deficit with certain countries and then his solution is flawed because he refuses to listen to the 'experts' and instead gets advice from Roger Stone; Steve Bannon; Alex Jones and any and all who have no knowledge of the issue.

 

Trump doesn't understand quiet diplomacy such as speaking softly and carrying a big stick. Instead, he yells, carries no stick and usually has to backtrack because his methodology is flawed.

 

He is headed for a real showdown with Congress when the November vote puts the Dems in control of the house which means potential impeachment proceedings.  It won't be because of the Mueller probe per se. -although I continue to be amazed at the number of Americans who refuse to believe the Russians had no affect on the 2016 Presidential election.  At the very worst- the Russians interfered and tried to influence an American election and was supported by people close to the Trump campaign.  Anyone ever hear of treason?  Trump himself refuses to believe the Director of National Intelligence; the CIA and the FBI castigating them as an 'enemy of the State'".    I got news for Trump- these institutions work for the American people and the United States .

 

He has been enriching himself and his business empire since his inauguration.  He has literally spent millions of tax dollars going to Florida or New Jersey for weekend trips and his Worldwide Business Empire is being used to influence his decisions.  He is in violation of the US Constitution under the emoluments clause which states a President cannot use his position to enrich himself.

 

We can hold our noses and live with his infidelity; lack of proper decorum and downright idiocy but  potential treason and violations of the Us Constitution- no way .  Trump is headed for the scrapheap of history and those who voted for him with the best intentions are about to get a lesson in what ia con man Trump really is.

1 hour ago, bushdoctor said:

You are welcome to perceive it your way, but realize the steel tariff is still in place. Prior to this the EU wasn’t interested in negotiations. 

Why do you spread false Information?

Since 2013, the EU Commission and the US government have been negotiating the Transatlantic Trade and Investment Partnership (TTIP). With the election victory of Donald Trump as US President, the negotiations were suspended in 2016.

8 hours ago, webfact said:

WASHINGTON (Reuters) - U.S. President Donald Trump and the European Union's chief executive, Jean-Claude Juncker, agreed on Wednesday to work toward eliminating trade barriers on industrial goods, as Trump appeared to give ground on his threat to impose car tariffs.

well that was yesterday.

 

Just waiting for Trump to renege on the deal... 

3 minutes ago, Basil B said:

well that was yesterday.

 

Just waiting for Trump to renege on the deal... 

would impose car tariffs or
wouldn´t impose car tariffs?
With him it is never really clear what he means.
Was probably just a slip of the tongue.
As the G7 summit showed, his promises and signatures are worth Nothing.
 

3 hours ago, bushdoctor said:

Bowing to pressure? The EU made concessions, Trump doesn’t want a trade war, he is negotiating for fairer trading agreements. 

From the OP...

 

"But Trump agreed to "resolve" existing U.S. tariffs on European steel and aluminum as well as Europe's retaliatory tariffs against American motorcycles, bourbon and other products"

 

In addition for the EU to import more LPG from the US it will need to build suitable terminals / infrastructure as well the US will need to be competitive to Russian dry gas pricing. The EU may well have a view the proposed deal is a strategic backup for energy supply. 

 

EU had advised the Trump Administration that if he imposed additional tariffs on auto imports, retaliation would amount to $300 billion in additional tariffs on US exports; one would guess that gave pause to Trump's POV of "I win, you lose".

 

Since Trump gained power his Administration has been deliberately undermining the functioning of the WTO. Accordingly it may well take considerable time and effort to rebuild the resources and functionality of the WTO to be effective with facilitating trade negotiations.

 

All up a big question mark of whether Trump actually 'won'.

Ah, lot of noise. Those EU Soros Open Society Foundations puppets are used to follow orders. Now they have to act on their own, and they are obviously overchallenged to that. Trump this, Trump that...