US President Donald Trump has proposed a mutual cancellation of “all tariffs, barriers and subsidies” in trade with the European Union in order to provide “fair trade”. He is due to conduct business negotiations with European Commission President Jean-Claude Juncker on Wednesday.
“The European Union is coming to Washington tomorrow to negotiate a deal on Trade. I have an idea for them. Both the US and the US drop all Tariffs, Barriers and Subsidies! That would finally be called Free Market and Fair Trade! Hope they do, we are ready – but they will not!” Trump said from his Twitter account.
The European Union is coming to Washington tomorrow to negotiate a deal on Trade. I have an idea for them. Both the U.S. and the E.U. drop all Tariffs, Barriers and Subsidies! That would finally be called Free Market and Fair Trade! Hope they do it, we are ready – but they won’t!
— Donald J. Trump (@realDonaldTrump) July 25, 2018
US House Speaker Paul Ryan told a news conference he hoped current trade tensions between the United States and the European Union would result in a mutual reduction of trade barriers.
Trade relations between the EU and the US have been strained since Trump imposed high tariffs on steel and aluminum imports against dozens of countries, including Europe’s bloc, in June. The European Union has imposed its own barriers on US products in response.
During his presidential campaign, Trump promised to change the country’s trade policies with protectionism.
Following his inauguration, Trump began to deliver on its promises by withdrawing the United States from the Transpacific Partnership (TPP), renegotiating the North American Free Trade Agreement (NAFTA), and imposing additional tariffs on its trading partners.
EU Trade Commissioner Cecilia Malmstrom and Japan’s Economy Minister Hiroshige Seko met in Brussels back in March for preliminary talks before receiving US Trade Representative Robert Lighthizer – a follower of the “America’s First” mantra.
Initially, the meeting aimed to discuss China’s oversupply of steel, but after Trump’s announcement, the meeting became a crisis cabinet.
“We are looking for a bit more clarity about the process than what happens in the US,” a European Union official said on condition of anonymity to the AFP news agency back in March.
“There are few expectations of any solution today, but maybe we can get an idea of how we can get to one,” the source added.
The most intense part of the trade war is with China however.