Trump Pushing Hard for 25 Percent Tariff on Imported Vehicles

Daniel Fowler
July 26, 2018

Trump said Europe agreed to increase purchases of USA liquefied natural gas and lower trade barriers to American soybeans, aiding U.S. farmers and the energy sector.

Jean-Claude Juncker, the president of the European Commission, said that the EU and the USA will "hold off further tariffs and reassess existing tariffs on steel and aluminum".

Juncker, at the CSIS, also highlighted how far Trump had deviated from the norm in transatlantic relations.

Mr Juncker said striking a deal on zero tariffs on industrial goods was his "main intention".

Juncker, joined by EU trade chief Cecilia Malmstrom, was expected to raise the possibility of talks between major auto-exporting countries aimed at reducing tariffs on the auto trade worldwide, according to a senior European official who spoke on condition of anonymity to describe internal deliberations.

China targeted tariffs on USA farm products after Trump imposed new steel and aluminum tariffs earlier this year, selecting crops and products in areas where Trump enjoys support. But the taxes also exact a toll on USA businesses and consumers, which pay more for imported products. The two leaders also promised "to launch a close dialogue on standards in order to ease trade, reduce bureaucratic obstacles, and slash costs".

The department "will not stand by while our hard-working agricultural producers bear the brunt of unfriendly tariffs enacted by foreign nations", he said. Are we just going to continue and let our farmers and country get ripped off? "It's a first step".

The truce may prove to be short lived if the two sides can't resolve their differences over trade in vehicles and auto parts.

The measures are a response to an estimated $11 billion in "trade damage from unjustified retaliation", the agency said. Canada, Mexico and the European Union have said they are prepared to respond.

Man held in Beijing after triggering 'explosion' outside US embassy
The bomber injured his hand during the incident, but there was no danger to his life and he was immediately sent to hospital. Authorities have yet to comment of the incident and an embassy spokesman said he was still collecting information.

However, the deal was contingent "on the understanding that as long as we are negotiating. we will hold off further tariffs, and we will reassess existing tariffs on steel and aluminum".

German Economy Minister Peter Altmaier hailed the deal as a breakthrough, saying the measures agreed by Trump and Juncker could help avoid a trade war and save millions of jobs.

Giessel, who grows wheat and corn near the western Kansas community of Larned, said he was "glad they are trying to be doing something, but I don't know when the day is over how much difference it is going to make".

The DIHK chambers of Commerce gave a cautious welcome to what was agreed, saying however, that US auto tariffs were not totally off the table.

But with Trump expecting Juncker to come to Washington with a "significant" offer - and Brussels saying that won't happen - the outcome of this meeting is too tricky to call.

On the eve of his meeting with Russia's Vladimir Putin, US President Donald Trump rattled allies once more by labeling the European Union a "foe" with regard to trade.

Donald Trump warned at a cabinet meeting last week that he would move forward with 25 per cent auto tariffs if the meeting with Mr Juncker didn't go well.

Congress is increasingly uneasy with Trump's aggressive use of tariffs.

Price increases would vary by product, ranging anywhere from a few cents on a can of beer or soup to around $6,000 on a family vehicle, if the administration moves forward with auto-specific tariffs it has threatened.

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