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Trump holds off on planned European Union auto tariffs

Trump holds off on planned European Union auto tariffs

Juncker, who has previously spoken out against U.S. tariffs on steel and aluminium, said, "And just as we share the same concerns, we also have common opportunities that we need to capitalise on".

Brussels had hit back at the United States over the metals tariffs by imposing duties on more than $3 billion of USA goods, including blue jeans, bourbon and motorcycles, as well as orange juice, rice and corn.

"The first issue that we'll begin negotiating is... the issue on the steel and aluminium tariffs and retaliatory tariffs", Mnuchin said on CNBC.

"Phase one will be to immediately resolve those issues so there will be no tariffs in either direction", Mnuchin said. He tore up an agreement to join a Pacific trade pact, has threatened to pull out of NAFTA, and imposed steel and aluminum tariffs aimed at China. Just when Trump "rages against reality" by demanding that his family, let alone his staff, adhere to the rule that Fox is the only source of approved news, the farmers are bringing their inescapable truth directly to the president where he lives.

Still, the deal announced on Wednesday with the European Union is an encouraging sign that America's trade partners may be able to placate the Trump administration with offers to buy more USA goods, averting a trade war that the International Monetary Fund has warned may undermine the strongest global upswing in years. The most significant gain was a commitment from the European Union to purchase more US soybeans and liquefied natural gas, which wouldn't have been necessary if the USA wasn't fighting a separate trade war with China, the largest consumer of US grown soybeans and a top buyer of liquefied natural gas.

Some farmers are going to have some tough conversations with their bankers, said John Heisdorffer, president of the American Soybean Association and himself a grower in Keota, Iowa.

"We shouldn't have a policy that creates economic distress and then implement FDR-style New Deal era programs to remedy problems of our own creation", said Rep. Andy Barr, R-Ky.

While the assistance plan "will help out a little bit", he said, sour prices will prompt bankers to ask: "Why should I give you money again to operate?" Additionally, as Heather Long and Steven Mufson note in The Washington Post, it's way too soon to declare the USA -E.U. trade war over.

French Finance Minister Bruno Le Maire yesterday said France has asked for clarifications on those measures agreed during the meeting, reported Agence France-Presse.

USA stocks shot to their highs of the day, with the benchmark S&P 500 Index rising by the most in almost two months to close the day within 1pc of an all-time high.

Agricultural equipment makers Deere & Co. and Agco both advanced, but General Motors, Ford and Fiat Chrysler all fell.

But even with good news on auto tariffs, vehicle companies General Motors, Ford and Fiat Chrysler all fell. In the meantime, "Steel and aluminum tariffs stay in place", he added. In the meantime, the parties have agreed, at least for now, to hold off on additional tariffs while they try to negotiate a broader agreement.

Trump told supporters he won access for United States soybean producers - "We just opened up Europe for you farmers", he said, portraying the agreement as unprecedented.

That is "not an unreasonable timeframe if everybody wants to get it done", he told a Senate committee, shortly before he was due to meet with a Mexican trade delegation.

First, we will work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-automotive industrial goods. These include prohibitions on certain products that do not conform to the rigid standards of domestically produced European Union goods, even though most of the would-be imports are perfectly safe and used on a frequent basis in wealthy economies ranging from China to the United States.

Ross said his department will continue its investigation into possible tariffs on imports of auto and auto parts and submit a report to Trump sometime next month.

Juncker declared he "had the intention to make a deal today and we made a deal today".

But he also cautioned that the U.S. is watching China's currency movements for any sign Beijing is manipulating the yuan.