Trump, EU's Juncker agree to ease trade tensions

Germany's economy minister described the agreement as a "breakthrough" that "can avoid trade war."

Trump, EU's Juncker agree to ease trade tensions

World Bulletin / News Desk

US President Donald Trump and European Commission chief Jean-Claude Juncker on Wednesday agreed on a plan to defuse the festering trade dispute between the two major economies.

The pair -- who met for more than two hours of talks at the White House -- also said they would work to "resolve" the existing duties on steel and aluminum imposed by Washington, which had angered key allies including the European Union.

"We want to further strengthen this trade relationship to the benefit of all American and European citizens," Trump said in a statement delivered from the White House Rose Garden. 

"A breakthrough has been quickly made that nobody thought possible!" he wrote on Twitter, later adding: "Great to be back on track with the European Union. This was a big day for free and fair trade!"

The outcome seemed a victory for Trump, who had assured supporters that his confrontational trade strategy would bear fruit, and who appears to have conceded little in the talks with the EU. 

The leaders agreed to "launch a new phase" in the relationship and "to work together towards zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods," Trump said.

In addition, the EU has made a commitment to buy US soybeans and natural gas.

Juncker, who had been somewhat defiant ahead of the meeting, said afterwards: "I had the intention to make a deal today. And we made a deal today."

However, the deal was contingent "on the understanding that as long as we are negotiating... we will hold off further tariffs, and we will reassess existing tariffs on steel and aluminum."

While EU officials had threatened immediate retaliation to any auto tariffs, and said they would not negotiate with Washington under duress, they seem to have decided to appease the irascible US leader.

"Congrats to @JunckerEU, @realDonaldTrump: Breakthrough achieved that can avoid trade war & save millions of jobs! Great for global economy!" German Economy Minister Peter Altmaier said on Twitter after the talks.

Last Mod: 26 Temmuz 2018, 10:24
Add Comment