A showdown on trade at the White House on Wednesday is expected to result in a standoff — at least for now.
A meeting between U.S. officials, led by President Donald Trump, and a European Union delegation, headed by European Commission President Jean-Claude Juncker, is looking to avert the widening trans-Atlantic gap that could turn into a full-scale trade war affecting half of global commerce.
“We just want it to be a level playing field for our farmers, for our manufacturers, for everybody,” Trump said, sitting alongside Juncker in the Oval Office. “If we could have no tariffs, no barriers, no subsidies, the United States would be very pleased.”
Juncker is putting forth two proposals, according to European officials. One would involve a tariff-free deal not only including the U.S. and EU automakers but those from Japan and South Korea, as well. The other suggestion: a limited U.S.-EU free-trade agreement focused on industrial tariffs.
“We are close partners — allies, not enemies — we have to work together,” declared Juncker, who is also hoping to persuade the U.S. president not to impose huge new tariffs on imported cars following Trump’s imposition of such import taxes on steel and aluminum.
There are “many countries where they have massive barriers and they have massive tariffs and we have to follow,” Trump said while reporters were in the Oval Office for a brief portion of the meeting. “You could call it retaliation, but I’d rather just say that we want reciprocal. So, whether it’s with European Union or others, it has to be reciprocal in nature at a minimum.”
The U.S. president added, “We expect something very positive to take place.”
The EU has already retaliated against the Trump administration’s actions with $3 billion of tariffs on a range of American products from motorcycles to whiskey.
The European Commission is also preparing a list of $20 billion of U.S. goods to be hit with retaliatory tariffs, according to its trade commissioner, Cecilia Malmstrom.
Germany’s foreign minister, Heiko Maas, is warning that Europe won’t cave in to Trump’s threats.
“No one has an interest in having punitive tariffs, because everyone loses in the end,” Maas wrote on Twitter. “Europe will not be threatened by President Trump. If we cede once, we will often have to deal with such behavior in the future.”
Prior to his discussions with the Europeans, Trump met with Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan.
The previous day, Ryan told reporters he does not think “the tariff route is the smart way to go.”
Ryan said he understands Trump is seeking “a better deal for Americans,” but added the U.S. should instead “work together to reduce trade barriers and trade restrictions between our countries.”
Trump appeared to take offense to Ryan’s comments, questioning on Twitter on Wednesday morning why a “weak politician” would call for a reduction of trade restraints.
Trump also erroneously claimed the U.S. lost $817 billion on trade last year, a higher number than the $568.4 billion reported by the U.S. Bureau of Economic Analysis.
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