Thursday, US President Donald Trump declared victory for American farmers after mitigating a trade dispute with the European Union.
The agreement as a benefit of the US President’s straight forward tactics, which President Trump has deployed evenly against allies.
The details of the deal with European Commission chief Jean-Claude Juncker Wednesday halted a new round of US tariffs on autos and received a pledge to roll back duties on steel and aluminum.
In exchange, President Trump said he won access for US Soybean producers, and for American LGN (liquid nat gas).
“We just opened up Europe for you farmers,” he told supporters at a rally in the farm state of Iowa.
US Treasury Secretary Steven Mnuchin said the truce will “immediately resolve” tariffs and the EU retaliation at the center of the costly trade row.
“The 1st issue that we’ll begin negotiating is… the issue on the steel and aluminum tariffs and retaliatory tariffs,” Secreatry Mnuchin said on TV.
Secretary Mnuchin also confirmed that the US would not impose threatened auto tariffs while negotiations are ongoing. That would head off the threat of another round of EU tariffs on $20-B in US exports.
“Phase 1 will be to immediately resolve those issues so there will be no tariffs in either direction,” Secretary Mnuchin said.
The US declared a resounding victory for President Trump and his Stand Up stance, as Washington has conceded little in exchange.
“If we hadn’t had steel and aluminum tariffs, we never would have gotten to the point we are now,” Commerce Secretary Wilbur Ross told reporters. “This is a real vindication of the President’s trade policy.”
The United States and the EU account for about $1 trillion in transatlantic trade, and on Wednesday the leaders agreed to work towards eliminating all tariffs, trade barriers and subsidies.
President Trump said the EU made a commitment to buy more US Soybean and LGN, but one European official disputed that characterization.
The joint statement said Brussels and Washington would “work to reduce barriers and increase trade” in a range of products including Soybeans, and that the EU “wants to import more liquefied natural gas (LNG) from the United States.”
But an EU official told reporters it will be up to the markets to decide whether to buy more US goods. “We are not going to turn into a Soviet-style economy.”
ECB chief Mario Draghi called the tentative truce a “good sign, because in a sense it shows that there is a willingness to discuss trade issues in a multilateral framework again.”
The financial responded positively.
America First and MAGA