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Trump Strikes Unexpected Trade Deal with EU

<p>President Trump met with European Commission President Jean-Claude Juncker on Wednesday to talk about trade&period; At the end of the meeting&comma; the two leaders announced a plan to work towards the elimination of all tariffs and trade barriers between the EU and the US&period;&nbsp&semi;<&sol;p>&NewLine;<p>Trump had proposed the complete elimination of barriers the day before&comma; suggesting on Twitter that the US was ready but the EU wasn&rsquo&semi;t&period;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;This was a very big day for free and fair trade&comma;&rdquo&semi; said Trump as the deal was announced to reporters&period; &ldquo&semi;We agreed today&comma; first of all&comma; to work together toward zero tariffs&comma; zero&comma; non-tariff barriers&comma; and zero subsidies on non-auto industrial goods&period;&rdquo&semi; The two sides also agreed&nbsp&semi;to reduce industrial tariffs on both sides and to increase the sale of natural gas and soybeans to the EU&period;&nbsp&semi;<&sol;p>&NewLine;<p>The soybean agreement benefits US farmers suffering from Chinese taxes&comma; while the fuel agreement benefits the EU by reducing the bloc&&num;8217&semi;s dependence on Russian energy&period;&nbsp&semi;<&sol;p>&NewLine;<p>Both sides agreed that no new tariffs would go into effect during negotiations&comma; a decision Senator Lindsey Graham &lpar;R-SC&rpar; described as &&num;8220&semi;smart&&num;8221&semi; and the &&num;8220&semi;best way to achieve a win-win solution&period;&&num;8221&semi;<&sol;p>&NewLine;<p>The EU also unexpectedly agreed to join the US in pursuit of reforms at the World Trade Organization &&num;8211&semi; an organization Trump believes is biased against the US&period;<&sol;p>&NewLine;<p>&&num;8212&semi;<&sol;p>&NewLine;<p>The trade dispute between the US and EU began in March when&nbsp&semi;Trump announced plans to impose a 25&percnt; tax on steel and a 10&percnt; tax on aluminum&period; The tariffs went into effect&comma; and the EU responded by taxing &dollar;3&period;25 billion worth of American products including motorcycles&comma; whiskey&comma; and peanut butter&period;&nbsp&semi;<&sol;p>&NewLine;<p>Trump then threatened to impose a 25&percnt; tariff on European-made cars &&num;8211&semi; a change that would have increased the price of a single vehicle&nbsp&semi;by more than &dollar;11&comma;000&period; The EU currently charges a 10&percnt; tax on US-made cars&period; The US charges a 2&period;5&percnt; tax on European-made cars&period;<&sol;p>&NewLine;<p>While Juncker had initially sought to hit the US with more tariffs&comma; German automakers pressured him to consider Trump&rsquo&semi;s zero-tariff idea&period;&nbsp&semi;<&sol;p>&NewLine;<p>After the meeting&comma; Trump and Juncker confirmed they would try to&nbsp&semi;&&num;8220&semi;resolve&&num;8221&semi;&nbsp&semi;the steel and aluminum tariffs as well as the duties the EU imposed in response&period;&nbsp&semi;More details on that effort are expected to be released after the November elections&period;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;The United States and the EU together count for more than 830 million citizens and more than 50&percnt; of the global GDP&comma;&rdquo&semi; said Trump&period; &ldquo&semi;In other words&comma; we&rsquo&semi;re more than 50&percnt; of trade&period; If we team up&comma; we can make our planet a better&comma; more secure and more prosperous place&period;&rdquo&semi;<&sol;p>&NewLine;<p><strong>Editor&&num;8217&semi;s note&colon;<&sol;strong> It is likely the mainstream media will not recognize the maneuverings of President Trump as true negotiating capability&period; But here is is&period;<&sol;p>&NewLine;

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