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Trump, EU trade deal averts trade war, tariffs

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Trump Juncker
President
Donald Trump and European Commission president Jean-Claude
Juncker speak in the Rose Garden of the White House, Wednesday,
July 25, 2018, in Washington

Alex
Brandon/AP


  • President Donald Trump on Wednesday said he struck a
    deal with European Union officials to avoid a full-blown trade
    war, causing stocks to soar.
  • The EU will import more American soybeans and natural
    gas, adjust regulations to help medical devices be traded more
    easily, and both sides will decrease industrial
    tariffs.
  • The EU threatened to impose retaliatory tariffs on $20
    billion of US goods if the talks failed. 

President Donald Trump on Wednesday said he struck a preliminary deal with
European Commission President Jean-Claude Juncker to ease trade
tensions and avoid a full-blown trade war with the European
Union.

“This was a very big day for free and fair trade,” Trump said
during a hastily scheduled joint appearance in the White House
Rose Garden with Juncker, hailing a “new phase” of trade
relations with the EU.

The Dow Jones industrial average spiked by almost 140 points
after the news broke, ending the day nearly 0.7% higher.

The EU agreed to import more American soybeans and liquefied
natural gas, Trump said. Both sides will work to decrease
industrial tariffs and adjust regulations to allow US medical
devices to be traded more easily in European markets, Trump said.
He said they would work to “resolve” steel and aluminum tariffs
the US imposed earlier this year.

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
.

“We’re starting these negotiations right now, but we very much
know where its going,” Trump said to reporters. “We will also
resolve the steel and aluminum tariff issues, and we will resolve
the retaliatory tariffs.” 

Before the Wednesday meeting, the EU’s top trade official
commissioner Cecilia Malmstrom warned that if the negotiations
fell through, the EU was ready to slap $20 billion worth of US
goods with retaliatory tariffs.

“We will hold off on further tariffs, and reevaluate existing
tariffs on steel. This was a good and constructive meeting,”
Juncker said at the joint conference. 

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