US President Donald Trump and Jean-Claude Juncker started negotiations aimed at defusing the trade tensions between the transatlantic allies.
The two leaders agreed to work together towards eliminating all tariffs, trade barriers and subsidies related to non-auto industrial goods. They would also work together to reform the WTO (World Trade Organization) and reduce trading costs and regulatory barriers.
Automobile trade was not mentioned by the two leaders but they said that all tariffs would be suspended while negotiations are going on. The US President has threatened to raise tariffs by up to 25% on import cars from around the world, while targeting the EU as one part of the world.
Trump said that the EU has agreed to start “almost immediately” buying “a lot more” US soybeans, one of the commodities that was in the center with the trade dispute between US and China. Also the EU would become a massive buyer of US natural gas.
The United States and the European Union have a $1 TRILLION bilateral trade relationship – the largest economic relationship in the world. We want to further strengthen this trade relationship to the benefit of all American and European citizens… pic.twitter.com/4zlmEEtCpG
— Donald J. Trump (@realDonaldTrump) July 25, 2018