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Trump accuses China of using 'vicious' trade tactics

Trump accuses China of using 'vicious' trade tactics

The U.S. and the EU had been on course for a full-on trade war after Trump announced earlier this year tough new levies on steel and aluminum exports, . and recently threatening a 25-percent tariff on European autos, with the EU reciprocating with tariffs against U.S. goods.

President Donald Trump proclaimed that "Tariffs are the greatest!" in warning US trade partners that he'll impose more sanctions unless they negotiate a "fair deal" as negotiations with European officials are to get underway at the White House.

Trump has threatened to impose 25 percent tariffs on auto imports, a move that would hit European carmakers like BMW and Volkswagen hard, as well as Japanese and South Korean vehicle companies.

Trump on Wednesday said he had reached an agreement with the EU to work together toward a policy of "zero" tariffs and trade barriers, adding "we are starting the negotiation right now, but we know where it is going" and proclaiming "a new phase" in US-EU trade relations, Efe news reported. Both sides agreed to work toward the goal of "zero" tariffs and subsidies on non-auto industrial goods and to "resolve" recent tariffs that both sides have imposed. The E.U. subsequently retaliated with tariffs on a number of US goods.

"This administration's tariffs and bailouts aren't going to make America great again, they're just going to make it 1929 again", he said in a statement.

Mary Lovely, a Syracuse University economist who studies trade, said, "The Chinese are not going to be buying our soybeans, so nearly by musical chairs our soybeans are going to Europe".

The White House has made a decision to direct $12 billion in emergency aid to American farmers, to help take the sting out of the trade war that President Donald Trump started.

It takes months for most consumers to feel the impact of tariffs, but as the fall approaches, everything from groceries to appliances could start to cost more at major retailers across the country.

Trump pushed back against critics of his plan on Wednesday, telling them to "be cool" because "the end result will be worth it!"

Trump said he and Juncker are committed to strengthening the trade relationship between Americans and Europeans and to loosening trade restrictions. Farmers in Iowa alone could lose as much as $624 million on soybean shipments to China, Donnelle Eller, an agriculture reporter with the Des Moines Register, told CBSN last month.

Trump said that the European Union would buy "immediately a lot of soybeans" from U.S. farmers "in the Midwest primarily".

Mr. Trump has also accused Beijing of manipulating its yuan currency to give its exporters an edge, a charge rejected by China. They also announced the European Union would begin purchasing more American liquified natural gas - a direct shot across the bow of Russian Federation - and soybeans.

"And the European Union is going to start nearly immediately to buy a lot of soybeans", Trump said during the announcement.

"As farmers we're accustomed to swings in the market, but here it felt like the rug got pulled out from under us" said Kenny.

It remains to be seen if the surprise deal, which came together in just three and half hours of talks, will stand the test of time despite Juncker and Trump's "understanding".

In addition, the European Union has made a commitment to buy USA soybeans and natural gas.

Sen. Ben Sasse, R-Neb., said the plan would spend billions on "gold crutches", adding, "America's farmers don't want to be paid to lose - they want to win by feeding the world".

Additionally, USDA will use CCC Charter Act and other authorities to implement a Food Purchase and Distribution Program through the Agricultural Marketing Service to purchase "unexpected surplus of affected commodities such as fruits, nuts, rice, legumes, beef, pork and milk for distribution to food banks and other nutrition programs".

"That's not free trade, that's fool's trade, that's stupid trade and we don't do that kind of trade anymore", stressed Trump.