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U.S. NEWS Thursday 26 July 2018
TRADE WAR He has slapped taxes on ment.
Continued from Front imported steel and alumi- "I think everybody sort of
In a hastily called Rose num, saying they pose a changed what they were
Garden appearance with threat to U.S. national se- going to say," said Sen. Pat
Trump, European Commis- curity. The U.S. and EU are Roberts, R-Kan.
sion President Jean-Claude now working to resolve Lawmakers said they still
Juncker said the U.S. and their differences over steel needed to see details of
the EU have agreed to hold and aluminum — but the the agreement with the
off on new tariffs, suggest- tariffs are still in place. And EU as well as progress on
ing that the United States they would continue to hit the other deals. But they
will suspend plans to start U.S. trading partners like said the breakthrough an-
taxing European auto im- Canada, Mexico and Ja- nouncement was a step in
ports — a move that would pan even if the U.S. and the the right direction.
have marked a major es- EU cut a deal. "We have more confi-
calation in trade tensions Whatever progress was dence in him now than we
between the allies. achieved Wednesday did before," said Rep. Mike
Trump also said the EU had could provide some relief Conaway, R-Texas, the
agreed to buy "a lot of for U.S. automakers. The es- chairman of the House Ag-
soybeans" and increase its calating trade war and tar- riculture Committee.
imports of liquefied natural iffs on steel and aluminum The White House an-
gas from the U.S. And the had put pressure on auto nouncement came as the
two agreed to resolve a company earnings. Gen- Trump administration an- President Donald Trump and European Commission president
dispute over U.S. tariffs on eral Motors had slashed its nounced a final rule aimed Jean-Claude Juncker leaves the podiums after speaking in the
Rose Garden of the White House, Wednesday, July 25, 2018, in
steel and aluminum. outlook, and shares of Ford at speeding up approval of Washington.
"It's encouraging that Motor Co. and auto parts applications for small-scale Associated Press
they're talking about freer companies had fallen. exports of liquefied natural
trade rather than trade "Our biggest exposure, our gas. The Trump administra- Trump-Juncker meeting is But the auto trade war with
barriers and an escalating biggest unmitigated ex- tion has made LNG exports that it appears to have de- Europe is on hold while the
tariff war," said Rufus Yerxa, posure, is really steel and a priority, arguing that they layed an impending trade U.S. and EU engage in fur-
president of the National aluminum when you look help the economy and en- war over autos. Trump had ther trade talks. Daniel Iken-
Foreign Trade Council and at all of the commodities," hance geopolitical stability threatened to tax imported son, director of trade stud-
a former U.S. trade official. GM CEO Mary Barra said in countries that purchase cars, trucks and auto parts, ies at the libertarian Cato
But he said reaching a de- Wednesday. U.S. gas. potentially targeting im- Institute, warned that the
tailed trade agreement Trump has also imposed Juncker said the two sides ports that last year totaled fight could flare up again if
with the EU would likely tariffs on $34 billion of Chi- also agreed to work to- $335 billion. Trump grows impatient with
prove difficult. nese imports — a figure he gether to reform the World The European Union had Europe.
The tone was friendlier than has threatened to raise to Trade Organization, which warned that it would retali- "Auto tariffs are looming
it has been. During a re- $500 billion — in a dispute Trump has vehemently criti- ate with tariffs on products unless the EU buys more
cent European trip, Trump over Beijing's aggressive cized as being unfair to the worth $20 billion if Trump U.S. stuff and does other
referred to the EU as a drive to supplant U.S. tech- U.S. put duties on cars and auto things Trump demands," he
"foe, what they do to us in nological dominance. The biggest news from the parts from Europe. said.q
trade." Juncker, after Trump China has counter-
imposed tariffs on steel and punched with tariffs on
aluminum imports, said in American products, includ-
March that "this is basically ing soybeans and pork — a
a stupid process, the fact shot at Trump supporters in
that we have to do this. But the U.S. heartland.
we have to do it. We can The EU is stepping in to
also do stupid." ease some of U.S. farmers'
On Wednesday, Trump and pain. Juncker said the EU
Juncker said they have "can import more soybeans
agreed to work toward from the U.S., and it will be
"zero tariffs" and "zero sub- done."
sidies" on non-automotive Mary Lovely, a Syracuse
goods. University economist who
Trump told reporters it was studies trade, said, "The
a "very big day for free Chinese are not going to
and fair trade" and later be buying our soybeans,
tweeted a photo of him- so almost by musical chairs
self and Juncker in an em- our soybeans are going to
brace, with Juncker kissing Europe." The trouble is, Chi-
his cheek. na last year imported $12.3
"Obviously the European billion in U.S. soybeans, the
Union, as represented by @ EU just $1.6 billion.
JunckerEU and the United Trump's announcement
States, as represented by stunned lawmakers who
yours truly, love each oth- arrived at the White House
er!" he wrote. ready to unload concerns
The president campaigned over the administration's
on a vow to get tough on trade policies only to be
trading partners he accus- quickly ushered into Rose
es of taking advantage of Garden for what the chair-
bad trade deals to run up man of the Senate Agri-
huge trade surpluses with culture Committee called
the U.S. "quite a startling" develop-