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International News

Jul 26, 2018

Trump, EU's Juncker agree to ease trade tensions

US President Donald Trump and European Commission Chief Jean-Claude Juncker have agreed on a plan to defuse the festering trade dispute between the two major economies.

The agreement means Washington will not follow through with a threat to impose tariffs on autos. Both leaders, who met for more than two hours of talks at the White House, also said they would work to resolve the existing duties on steel and aluminium imposed by Washington.

Mr Trump said they want to further strengthen the trade relationship for the benefit of all American and European citizens. He said they agreed to work together towards zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods.

In addition, the European Union has made a commitment to buy US soybeans and natural gas. German Economy Minister Peter Altmaier in a tweet after the talks said that breakthrough achieved can avoid trade war and millions of jobs, which is great for the global economy. 

EU Trade Commissioner Cecilia Malmstrom, who accompanied Mr Juncker, hailed the agreement and tweeted that she will be working hard to take this work forward the coming months.

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