Donald Trump 'deal' with European Union boss Jean-Claude Juncker averts trade war

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Late yesterday, in a surprise announcement in the White House Rose Garden.

The EU's pledge to import more soybeans from US farmers was the "dealmaker" in the agreement between European Commission President Jean-Claude Juncker and US President Donald Trump to stop the dispute and open trade talks, EU sources told EURACTIV.

His Juncker, meeting, and the EU's agreement to import more natural gas and agricultural products from the U.S., is therefore being portrayed as a victory by his team, evidence that the controversial tactics of this deal-making President have paid off.

Meanwhile, China's President Xi Jinping on Wednesday said that there would be "no winner" in any global trade war, in a direct warning to Mr. Trump.

At that press conference, Trump said a deal with the European Union would would be a "win" on both sides of the Atlantic.

Trump said he and Juncker agreed that the European Union would buy USA soybeans, and that the European Union would become a "massive buyer" of US liquefied natural gas.

"That would be very worrisome, that would be rewarding Trump threats on tariffs", said Rem Korteweg, head of the Europe in the World unit at think-tank Clingendael.

He later told reporters that was a "major concession" on Trump's part and that he expected the United States president to follow through on it. Cutting these trade barriers to zero would be an extraordinarily complex political challenge on both sides of the Atlantic.

After talks at the White House with European Union officials, Trump announced in a joint Rose Garden appearance that the delegation agreed to increase imports of soybeans and liquefied natural gas.

"We're opening things up", Trump said in Dubuque (video above).

Europe's pledge to buy more natural gas gives Mr. Trump a talking point with Russian Federation, after he vowed to compete for orders in Europe, where Russian Federation is the largest supplier.

"They want to work together with us on China and they want to help us reform the WTO (World Trade Organization)", said the official, adding that the Europeans came into the talks "with a real positive spirit".

The manager also said the buyers are located within China and overseas, and she didn't know whether they were affiliated with Trump's official campaign or the Republican Party.

The Commerce Department could recommend new tariffs as early as September after an investigation into whether vehicle imports posed a risk to United States national security.

But Trump has form in doing U-turns, and U-turns on U-turns, on his own commitments. "Earlier today, our highest hopes were for a truce, and this is kind of like a truce".

Renewable Fuels Association President and CEO Bob Dinneen said his group was encouraged by Mr. Trump's supportive comments about ethanol. "No one has ever done it, ' he goes and does it", Conway said Thursday on Fox News" "Fox & Friends".

Wang Huiyao, president of the think tank the Centre for China and Globalisation, said Trump was also trying to show to China and other countries that he was determined to carry on with the trade war.

The two sides will seek to resolve the steel and aluminum tariff issues as well as a number of tariffs imposed in retaliation. So far at least, these are all goals rather than actual accomplishments.

"We don't know any other strategy than dialogue", said Malmstrom, who is now in Washington with Juncker.

As the article quoted above notes, we've been here before as recently as this year.

"Tariffs were, are and will not be great, even if the US president claims as such in his tweets", said Eric Schweitzer, president of the DIHK chambers of industry and commerce.

But U.S. Trade Representative Robert Lighthizer told a Senate committee Thursday that "we are negotiating about agriculture, period". According to Commission's thinking, Europe would have to open up its markets to U.S. agricultural products in order to have access to major works and contracts in the US.

A "flood" of lawmakers expressed similar trade policy concerns to Kudlow and Navarro in the meeting, said Rep. Bill Huizenga, R-Mich.