Trump, Juncker tout deal pulling back from US-EU trade war

  • Trump, Juncker tout deal pulling back from US-EU trade war

Trump, Juncker tout deal pulling back from US-EU trade war

Watch in the player above.

The president said the two allies will also work to resolve tariffs on steel and aluminum, and work towards "zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods".

Trump's announcement stunned lawmakers who arrived at the White House ready to unload concerns over the administration's trade policies only to be quickly ushered into Rose Garden for what the chairman of the Senate Agriculture Committee called "quite a startling" development.

"What I can say is that the president finds it extremely inappropriate for somebody to go on television under the perception of legitimacy, integrity and level false and baseless claims against another person without any evidence whatsoever", Gidley told the press gaggle.

Germany's VDA automotive association welcomed the EU-U.S. agreement to take steps to ease the threat of a transatlantic trade war, saying it offered a real opportunity to avert further tariffs. He warned that those who pursue "economic hegemony" will "only end up hurting themselves".

The two leaders diffused what had threatened to become a trade war between the two blocs, fuelled by tariffs set by Mr Trump on European steel and aluminium exports, and threats to expand the tariffs to cars.

He has also threatened to slap tariffs on imported cars, trucks and auto parts, potentially targeting imports that past year totaled $335 billion. "We will therefore work closely together with like-minded partners to reform the WTO and to address unfair trading practices, including intellectual property theft, forced technology transfer, industrial subsidies, distortions created by state owned enterprises, and overcapacity", the statement said, listing grievances that both the European Union and the U.S. have raised with China.

But any trade dispute involving automobiles would have major ramifications for both economies.

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.

The joint statement issued by Trump and Juncker specifically made reference to lowering tariffs on exports of United States soybeans and increasing "strategic cooperation" in the area of liquefied natural gas.

U.S. stocks closed the day mostly lower on Thursday, despite rallying after the announcement, as investors were cautious that the trade threat had fully receded. "Hope they do it, we are ready - but they won't!"

Treasury Secretary Steven Mnuchin recently confirmed that the first phase of trade negotiations with the European Union are underway.

European Union buyers have already been stepping up purchases, with USA supplies now available at a significant discount to exports from South America.

Trump made the deal under increasing pressure to abandon his tariffs.

Canada could benefit from a Trump decision to put off auto tariffs on Europe.

"The payments will be helpful to farmers facing overdue loans and angry bankers, but are completely insufficient if they mean that tariffs and the trade war will last for the foreseeable future", Hurst said.