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USA and European Union should ‘drop all Tariffs, Barriers and Subsidies’, Trump says

USA and European Union should ‘drop all Tariffs, Barriers and Subsidies’, Trump says

European Commission President Jean-Claude Juncker and European Trade Commissioner Cecilia Malmstrom will signal the EU's willingness to negotiate a bilateral trade agreement on manufactured goods, or a so-called plurilateral sectoral agreement between all major auto exporters which would cut or eliminate tariffs on automobiles globally.

The Trump administration has slapped tariffs on $34 billion in Chinese goods in a dispute over Beijing's high-tech industrial policies. On Wednesday, before Juncker's meeting with the president, the European Union prepared a list of $20 billion in USA goods that would be subject to duties if Mr. Trump imposes the auto tariffs.

The Alliance of Automobile manufacturers, a trade group representing both domestic and foreign-brand automakers, welcomed the agreement to hold talks instead of impose tariffs, saying the announcement "demonstrates that bilateral negotiations are a more effective approach to resolving trade barriers, not increasing tariffs".

Trump added: "This was a very big day for free and fair trade, a very big day indeed". "This administration's tariffs and bailouts aren't going to make America great again, they're just going to make it 1929 again". "That was my main intention, for those to come down to zero tariffs on industrial goods". "And we as farmers are playing the dupes again in this whole process", said Wisconsin farmer Michael Slattery who grows soybeans, corn, wheat and alfalfa with his wife on 300 acres in Maribel, Wisconsin.

Trump later tweeted that work on documents was "moving along quickly", adding that the meeting with Juncker had "great warmth". 'If tariffs punish farmers, the answer is not welfare for farmers - the answer is remove the tariffs'.

Trump and Juncker took no questions after their brief remarks in the Rose Garden, an impromptu appearance scheduled after about three hours of talks.

The EU announced earlier that it would proportionally respond to American trade tariffs, as well as initiate proceedings as part of the World Trade Organization (WTO).

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The administration said the program was just temporary.

"This is a short-term solution to allow President Trump time to work on long-term trade deals to benefit agriculture and the entire USA economy", said Secretary of Agriculture Sonny Perdue. Ryan said he doesn't support tariffs.

"We will not go against the spirit of this agreement unless either party terminates this negotiation", the United States president said, adding that the next step will be to withdraw U.S. tariffs on aluminum and steel imposed in May, as well as European Union retaliatory tariffs that followed. "You've got to treat everybody the same".

Agriculture officials say the plan will not require congressional approval. But they were later stunned when Trump went ahead and put the metals tariffs on America's allies on June 1. "The end result will be worth it!" "No weakness!" Trump wrote. The second second program will buy surplus products, including fruit, nuts, and dairy, and distribute them to food pantries and other programs. We've still got to work out the details.

Soybeans are likely to be the largest sector affected by the programs. In May, Trump abandoned a framework for trade negotiations with China within days of it being announced, before ratcheting up tariffs.

The Agriculture Department predicted before the trade fights that US farm income would drop this year to $60 billion, or half the $120 billion of five years ago.

Hmmm. Read the joint U.S. -EU statement.