When Donald Trump initially raised the prospect of Tariffs to fight back against huge trade deficits, democrats became unhinged. They defiantly spoke out against Trump, predicting tariffs would launch the U.S. into a trade war and alienate our allies. Trump responded by saying that the trade war began years ago and we were already losing badly with huge deficits, so essentially we had nothing to lose by imposing tariffs. Well, so far so good. The Trump EU trade deal will work towards “zero” trade barriers, tariffs and subsidies.
European Union to Avert Trade War by Increasing Imports of U.S. Gas and Soybeans
Trump stated :
- “We had a big day, very big,” the US president said in the White House rose garden, standing alongside Jean-Claude Juncker, the European Commission president, adding that there was a “new phase” in US-EU relations.
Trump had threaded crippling tariffs on European car imports. The EU responded, by threatening retaliatory measures of their own. Jean-Claude Juncker said that he came to the White House with the intention of offering a deal, and avoiding a trade war that would could damage both countries economically. In fact, the EU threatened to impose 20 billion in retaliatory trade measures if the talks were unsuccessful.
Trump added :
- “This was a very big day for free and fair trade, a very big day indeed.” “We will also work to reduce barriers and increase trade in services, chemicals, pharmaceuticals, medical products, as well as soybeans,” Trump said. “The European Union is going to start almost immediately to buy a lot of soybeans.”
The Agreement on Soybeans May Help to Offset China’s Tariffs on Soybeans
After China targeted U.S. farmers by subjecting them to tariffs on soybeans. With China being the biggest importer of U.S. soybeans, this threatened to carry a huge impact. Furthermore, Trump offered farmers a 12 billion dollar bailout to help them weather the storm during a potential trade war. Trump asked the farmers for patience, and it looks like Trump is delivering. While, this is a breaking story any help from the EU to import more soybeans will only help to strengthen Trumps hand when dealing with China’s tariffs. This is a big win for farmers and all those who were on edge about an impending trade war with the EU.
Trump said this on Twitter :
The United States and the European Union have a $1 TRILLION bilateral trade relationship – the largest economic relationship in the world. We want to further strengthen this trade relationship to the benefit of all American and European citizens… pic.twitter.com/4zlmEEtCpG
— Donald J. Trump (@realDonaldTrump) July 25, 2018
Stock Market Jumps 100 Points
Wall Street responded favorably after the initial report was released. The Dow jumped 100 points after stocks were mostly down for the day. Before the closed-door meeting with Jean Claude Junker, Trump stated that he was optimistic that the meeting could reduce the need for tariff barriers.
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An optimistic Trump said the following, before the meeting :
- “If we can have no tariffs, and no barriers and no subsidies, the United States would be extremely pleased,”
The Wall Street Journal reported that the EU made concessions and agreed to import more U.S. soybeens LNG (natural gas) and lower industrial tariffs. In addition to these concessions, the European Union has also agreed to reduce barriers and increase trade in pharmaceuticals, chemicals and medical products.
Trump / EU Averts Trade War and America is Now in a Better Place Because Of Trump’s Strong Stance
China targeted farmers (and Trump supporters) in the midwest with tariffs on U.S. soybeans. With the E.U. promising to import more soybeans, this will ease the pain that the farmers have felt. This is a big win for Trump, and the United States of America. Trade will now be more free, fair, and reciprocal. Zero tariffs seemed like a pipe dream for man, but Trump is proving that a strong leader can take America to greater heights. This is what Trump’s intentions were in the first place and the entire country will be the benefactor of the unfair trade deficit which has taken place for many years.
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