We Have A Deal: Trump And Juncker Agree To Avert A Trade War

Summary: so we have a deal, maybe. Trump and Juncker reached a deal to avert a transatlantic trade war, ease tensions stoked by Trump’s threat and impose tariffs on car imports.

The two leaders agreed to expand European imports of U.S. liquified natural gas and soybeans and lower industrial tariffs on both sides, Trump said. The U.S. and European Union will “hold off on other tariffs” while negotiations proceed, Juncker added.

"We had a big day, very big,” Trump said during the joint statement with Juncker at the White House Wednesday. He hailed “a new phase” of trade relations. The two leaders also said they would work toward “zero” tariffs on industrial goods, Bloomberg reported and added that they would try to “resolve” steel and aluminum tariffs he imposed earlier this year and retaliatory duties the EU levied in response.

The EU and US also agreed to launch new negotiations aimed at defusing rising transatlantic trade tensions: the two leaders said they had agreed to work together towards eliminating all tariffs, trade barriers and subsidies related to non-auto industrial goods. They also said they would work together to reform the World Trade Organization and reduce trading costs and regulatory barriers across the Atlantic.

There was no questions allowed after the press conference, which followed a three hour meeting between Trump and Juncker.

Juncker had came to Washington for a last-ditch bid to avoid U.S. tariffs on cars, although there was no explicit agreement reached on that particular topic.

Earlier in the day, Trump was said to be considering to slap 25% tariffs on as much as $200BN in foreign cars (in 2017, the total value of imported cars was just under $200BN).

* * *

Watch a recording of the Press Conference :

Key soundbites from the press conference:

  • TRUMP: WE AGREED TO WORK TOGETHER TOWARD ZERO TARIFFS ON INDUSTRIAL GOODS
  • TRUMP: EU WILL INCREASE PURCHASES OF U.S. SOYBEANS
  • TRUMP: DEAL MADE TO STRENGTHEN STRATEGIC ENERGY COOPERATION
  • TRUMP: DEAL FOR CLOSE DIALOGUE ON REDUCING TRADE BUREAUCRACY
  • TRUMP SAYS U.S., EU TO WORK TOGETHER TO `REFORM' THE WTO
  • TRUMP: WE WON'T GO AGAINST SPIRIT OF DEAL WHILE TALKS ONGOING
  • TRUMP: WE'LL RESOLVE STEEL, ALUMINUM TARIFF ISSUES

Juncker repeated pretty much that Trump said:

  • JUNCKER: I'M HAPPY THAT WE REACHED THIS AGREEMENT TODAY
  • JUNCKER: AS LONG AS TALKS ONGOING, WILL RESIST FURTHER TARIFFS
  • JUNCKER: U.S.-EU AGREED ON NO NEW TARIFFS DURING NEGOTIATIONS
  • JUNCKER: WE AGREE THERE'S GLOBAL OVERCAPACITY IN STEEL SECTOR
  • JUNCKER: WE AGREE THERE ARE TOO MANY ILLEGAL SUBSIDIES
  • JUNCKER: WE AGREED ON NEED TO CRACK DOWN ON FORCED TECH TRANSFER

It appears that Europe is no longer part of the resistance.

* * *

There was much pessimism going into today's meeting between US President Trump and EU Commission president Jean-Claude Juncker that any deal could be announced.

In fact, according to an analysis released earlier today by SGH Macro Advisors, hopes of anything tangible being announced are slim to none, as EU officials were dampening expectations right ahead of the widely anticipated summit over auto and trade tariffs between Trump and Juncker.

From what we understand, the EU is not coming with any “substantial offer” to Washington, but rather with some broad proposals intended to keep a dialogue alive and to avoid further escalation. EU officials are concerned about the raising of expectations last week by National Economic Council Director Larry Kudlow, and they see his comments to some extent as “bullying tactics” to pressure them into concessions in the negotiations.

And yet, according to Dow Jones and Reuters, Trump has managed to secure concessions to avoid a trade war, including agreeing to import more soybeans and lowering industrial tariffs as well as working more on LNG exports.

President Trump has secured concessions from Europe to avoid a trade war, with Europe agreeing to the following (per Dow jones):

  • Europeans agreed to work on more U.S. LNG exports
  • Europeans agree on lowering industrial tariffs
  • EU agrees to align regulator standards on medical products
  • EU agrees to import more U.S. soybeans

It was not immediately clear if auto tariffs are also included in the agreements, but stocks are surging on the news, and the January all time highs are now in sight:

As Bloomberg notes, while it's reasonable to wonder what the actual impact of European concessions might be, the knee-jerk reaction of markets is probably understandable.

Watch the press conference live below:

Comments

powow truthseeker47 Wed, 07/25/2018 - 16:14 Permalink
  • Europeans agreed to work on more U.S. LNG exports

Read the FINE LINE: "Agreed to WORK". Meaning: "Fine, we'll import ONE CUBIC meter more."

 

LOL

 

  • EU agrees to import more U.S. soybeans

As long as they're NOT GMO - which EU has banned and which they all are.

 

LOL

 

  • Europeans agree on lowering industrial tariffs

Fine, we'll lower one tenth of a point.

 

LOL

 

  • EU agrees to align regulator standards on medical products

We agreed to align, but it turns out that your medical products are not up to "standards."

 

LOL

 

Besides, NO PACT was signed, it's just HOT AIR.

 

Well, Trumptards, if you can't see that Trump is ALL show business and

NO substance, then you deserve him. So get fooled all the time and downvote.

 

What a FREAKIN joke.

 

In reply to by truthseeker47

FireBrander eforce Wed, 07/25/2018 - 16:32 Permalink

NBC...Once Trump was finished:

1. No big deal.

2. Nothing signed

3.No real specifics.

Wrapped it up in 30 seconds...then used the rest of the time to talk about "that secret recording"

Sickening..these fuckers wear thier agenda on both sleeves. 

Edit: Thinking about it...Didn't Trump and Junker just announce the goal of a free trade, zero tariff, economic policy between the EU and USA? That is HUGE!..and the press immediately starts shooting it down.

In reply to by eforce

Giant Meteor overbet Wed, 07/25/2018 - 16:49 Permalink

God dammit! Taking advantage of a stumble bum drunk is nothing to crow about.

Besides, after this son of a bitch goes back home and has has a quart or two , he will be claiming victory . It ain’t over yet Bet, although I admit as per usual , entertaining as all fuck. The showww must go on!

As a special side note let me just say, I was extremely sad to hear of Putin putting off his White House parlay till after the Mule Her investigation, which by my reconning puts it sometime in 2035, the year of our lord and heavy consumption of Brawndo. It has electrolytes !

In reply to by overbet

macholatte BennyBoy Wed, 07/25/2018 - 17:36 Permalink

Who writes this shit?

 

There was no questions allowed .....

Juncker had came to Washington .....

 

Trump has managed to secure concessions to avoid a trade war, including agreeing to import more soybeans and lowering industrial tariffs as well as working more on LNG exports.
(Isn’t it the EU that is going to IMPORT the soybeans?)

 

In reply to by BennyBoy

MK ULTRA Alpha BennyBoy Wed, 07/25/2018 - 17:39 Permalink

I thought he was going to do this with May and the UK meeting, redirect the China trade into the UK, but now it's the EU. Brilliant move, redirect China trade we lose in the trade war with China into Europe.

Lets hope the EU plays fair and accepts the trade, supposedly natural gas has been making deliveries in Europe, lets hope they take a lot more.

I wrote before, a new trend has been detected, oil company's revenues of natural gas are growing faster than crude revenues. The US economy is in the process of a great conversion to natural gas.

The demand for crude in the US has stalled according to reports, better gas millage standards and electric cars have slowed the demand growth for crude. Thus, the US petroleum industry is in a natural gas boom because the demand is there, therefore greater capital expenditure in natural gas. The US is ready to export natural gas to Europe and the UK.

In reply to by BennyBoy

NumberNone FireBrander Wed, 07/25/2018 - 17:11 Permalink

More than that, you know they were sitting outside of WH just praying that it would blow up and crash the world economy...despite smiling to the tv and reading words that told them to express how concerned they were over a negative outcome and to bash Trump over how wrong headed his actions were leading up to the meeting.  

 

 

In reply to by FireBrander

FreedomWriter FireBrander Wed, 07/25/2018 - 18:49 Permalink

All for home consumption. Allows EU hacks like Druncker to look like they are standing up against the big bad wolf. No one is impressed. Meanwhile back-room deals are being written by the cognoscenti. Same as it ever was. Maybe Trump will pull the rug out from under them at the last minute, just for fun.

In reply to by FireBrander

Giant Meteor dirty fingernails Wed, 07/25/2018 - 17:24 Permalink

Yeah good point. Nature has a way of instructing us. That is why evil bastards are desperately trying to thwart it at every turn. Other than that, never let it be said that rat's do not have discrimnating taste buds .. as well as a keen sense of self survival.

“When the last tree is cut, the last river poisoned, and the last fish dead, we will discover that we can’t eat money…” some native American

In reply to by dirty fingernails

Kafir Goyim dirty fingernails Wed, 07/25/2018 - 17:43 Permalink

Bullshit you did.

GMO is how we're feeding a world population that 30 years ago, everybody predicted would starve to death.  Now the little pansies have decided they're too good for GMO.

If you don't like it, plant a garden, but unless you want an awful lot of corpses underfoot, you better allow it to exist for those not rich enough to have a garden or buy at Whole Foods.

In reply to by dirty fingernails

TrajanOptimus Kafir Goyim Wed, 07/25/2018 - 18:03 Permalink

So we feed those poor fuckers GMO corn and then they get cancer and Medicaid pays the bills with the money they collect from me in Medicaid taxes.

Seems like a really idiotic deal to me.

It would be cheaper in the long run to make organic food available to everyone, burn Bayer/Monsanto to the fucking ground and focus on keeping people HEALTHY.

You sir are an idiot.

In reply to by Kafir Goyim

dirty fingernails Kafir Goyim Wed, 07/25/2018 - 18:11 Permalink

Listen cuntface, I do have a 1/2ac garden. And I *did* do the test. Go fuck yourself with your self-righteous attitude, prick. I have a small farm and I produce food for my family. I'm surrounded for probably a hundred miles by GMO corn and soy. I *might* know what I'm talking about as real world experience.

In fact, today I dug the Walla Walla onions and the shallots. Potatoes will be done in 3-4 days. Rox Orange Sorghum is starting head out. Russian Prince and San Marzano tomatoes are starting to ripen. Cucumbers were a failure this year. Zuchini are rocking. Rice is doing ok. Freedom Ranger chickens go to freezer camp next week, then its time for the second round. Pigs are growing nicely. 3 have a good personality, the other isn't friendly.

In reply to by Kafir Goyim

runningman18 BaBaBouy Wed, 07/25/2018 - 18:13 Permalink

Exactly.  Some people here yell "winning!" prematurely after every single summit/meet and yet, there is still no beef.  Not with North Korea, not with Russia, and probably not with the EU.  Lot's of talk, lot's of pronouncements and thin promises of what "might happen".  So far it's been soap opera politics and not much else. 

In reply to by BaBaBouy