(Bloomberg) — President Donald Trump reached an agreement Wednesday with European Commission President Jean-Claude Juncker aimed at averting a transatlantic trade war, easing tensions stoked by Trump’s threat to impose tariffs on car imports.
The two sides agreed to expand European imports of U.S. liquified and soybeans and lower industrial tariffs on both sides, Trump said.
“We had a big day, very big,” Trump said at a joint statement with Juncker at the White House Wednesday. He hailed “a new phase” of trade relations.
The two sides agreed to work toward “zero” tariffs, trade barriers and subsidies, Trump said.
Juncker came to Washington for a last-ditch bid to avoid U.S. tariffs on cars. Trump warned at a cabinet meeting last week that he would move forward with 25 percent auto tariffs if the meeting with Juncker didn’t go well.
Trump could impose car tariffs on national security grounds once Commerce Secretary Wilbur Ross completes a required investigation.
Auto tariffs at the level Trump has threatened would add about 10,000 euros ($11,700) to the sticker price of a European-built car sold in the U.S., according a European Commission assessment obtained by Bloomberg News last month. That would cut U.S. imports of European cars and car parts in half, the commission forecast.
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Source: Investing.com
