Just a short note to let you know that an armistice may be in the works in the U.S.-EU trade war.
President Trump met with European Commission President Juncker at the White House today. Following the meeting, the two each gave short statements to the media assembled in the Rose Garden.
President Trump started by saying that the United States and EU were entering a “new phase” in their $1 billion bilateral trade relationship. He went on to state that the two sides “agreed today . . .to work together towards zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods.” He also mentioned that the EU had agreed to buy “a lot of soybeans” and to start importing more liquefied natural gas (the EU will be a “massive buyer of LNG”). The two sides also agreed to start a dialogue on standards to help ease trade/reduce barriers and to work together to reform the WTO and combat unfair trade practices by other countries (read: China). He concluded by saying that these negotiations will start “now” and that the two sides will resolve both the U.S. steel and aluminum duties, as well as the EU retaliatory duties.
President Juncker gave a shorter statement that (largely) corroborated what President Trump said. The two sides would negotiate a zero tariff agreement on industrial goods, cooperate more on energy and agriculture, begin a dialogue on standards and work together to reform the WTO. He also said there was agreement that, as long as the parties are negotiating, no further tariffs would be imposed and existing tariffs would be reassessed.
This is a positive development. That said, the devil is always in the details. For example, it is not yet clear whether the United States will lift the 232 duties on steel and aluminum for EU origin products immediately, or only once an agreement is formally reached, etc. Stay tuned for more. In the meantime, if you have any questions, please let us know.