US President Donald Trump said on Wednesday (25.7.2018) that his country and the European Union (EU) have started talks to reduce trade barriers as part of efforts to avoid a tariff war.
"This was a great day for free and fair trade, a really great day," Trump told reporters at the White House after meeting with European Commission President Jean-Claude Juncker.
"We are just starting the negotiations now, but we know very well where they are going," he added.
Tariffs, services and soybeans
Speaking with Juncker at his side, Trump said they agreed in their conversation to "work together toward zero tariffs, zero non-tariff barriers and zero subsidies on non-automotive industrial goods."
We will also work to reduce barriers and increase trade in services, chemicals, pharmaceuticals, medical products, as well as the soybean"Soy is a big business," he said.
He also said Europe would also increase purchases of liquefied natural gas from the United States. "They are going to be a massive buyer of LNG," Trump said.
The Republican president said the talks would "resolve" both the high tariffs the United States had imposed on steel and aluminum imports from the EU, as well as the tariffs Europe had placed on American products in retaliation.
Automobiles
It was not clear whether the two sides made progress on the contentious issue of possible U.S. tariffs on car imports from Europe.
But Juncker said they had agreed not to impose new tariffs while talks are underway"This was a good and constructive meeting," he stressed.
Trump has threatened to impose 25% tariffs on car imports, a move that would hit European automakers such as BMW and Volkswagen hard, as well as manufacturers in Japan and South Korea.
Both Trump and Juncker had earlier expressed their desire to lower tariffs and ease tensions transatlantic trade.
Juncker had stressed that the EU and the United States, which account for half of global trade, "are close partners, allies and not enemies. We have to work together."
Source: Reuters
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