Trump agrees to ease car tariffs on EU to calm trade war fears

After a meeting at the White House on July 25, US President Donald Trump and European Commission President Jean-Claude Juncker appeared to reach a deal to quell all the trade barriers between the two countries. Trump agreed to ease sweeping tariffs on the EU-assembled cars, while Jean-Claude intended to remove heavy retaliatory duties on the US exports.  

“We had a big day, very big,” said the US President standing alongside Jean-Claude in the White House rose garden, adding that they also discussed to resolve US tariffs on steel and aluminium – marking a step back from Trump’s signature import protections for American metal producers.

Trump told reporters, “We agree today, first of all, to work together toward zero tariffs, zero, non-tariff barriers, and zero subsidies on non-auto industrial goods.”

President further said the European Union agreed to increase purchases of US liquefied natural gas and lower trade barriers to American soybeans, which would be of great help to US farmers and the energy sectors.

"Soybeans is a big deal. And the European Union is going to start, almost immediately, to buy a lot of soybeans," Trump said after the meeting.

The US and EU also decided at the meeting to set up an existing working group that would work on trade and assess existing tariffs, keeping the betterment of both the countries in mind.

Trump and Juncker both were found amiable at the meeting, aiming to avert a trade war. They concluded, "We will not go against the spirit of this agreement, unless either party terminates the negotiation. We're starting the negotiation right now but we know very much where it's going."