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| Tariffs are the greatest, tweets Trump – hours before meeting Juncker | Tariffs are the greatest, tweets Trump – hours before meeting Juncker |
| (about 2 hours later) | |
| Donald Trump issued a fresh threat to the EU hours before a meeting with Jean-Claude Juncker at the White House, where the European commission president is to make a last-ditch effort to avert a transatlantic trade war. | Donald Trump issued a fresh threat to the EU hours before a meeting with Jean-Claude Juncker at the White House, where the European commission president is to make a last-ditch effort to avert a transatlantic trade war. |
| In a tweet, the US president suggested that it was the EU that stood in the way of free trade, and that his tough talk was forcing Brussels to the negotiating table. | In a tweet, the US president suggested that it was the EU that stood in the way of free trade, and that his tough talk was forcing Brussels to the negotiating table. |
| The US administration has already applied high tariffs to EU steel and aluminium exports, and is embroiled in a trade war with China. | The US administration has already applied high tariffs to EU steel and aluminium exports, and is embroiled in a trade war with China. |
| Trump has repeatedly threatened to impose further tariffs on European cars being imported into the US over a perceived imbalance in trade between the two economic blocs. | Trump has repeatedly threatened to impose further tariffs on European cars being imported into the US over a perceived imbalance in trade between the two economic blocs. |
| The US president tweeted: “Tariffs are the greatest! Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs. It’s as simple as that — and everybody’s talking! Remember, we are the “piggy bank” that’s being robbed. All will be Great!” | The US president tweeted: “Tariffs are the greatest! Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs. It’s as simple as that — and everybody’s talking! Remember, we are the “piggy bank” that’s being robbed. All will be Great!” |
| While EU sources have suggested that Trump and Juncker get on well on a personal level, hopes of any positive developments out of the White House meeting on Wednesday are not high in Brussels. | While EU sources have suggested that Trump and Juncker get on well on a personal level, hopes of any positive developments out of the White House meeting on Wednesday are not high in Brussels. |
| At a meeting of the leaders of the G7 major powers in Canada last month, Trump accused Juncker of being a “brutal killer”, presumably with regard to the EU’s trade policies. | At a meeting of the leaders of the G7 major powers in Canada last month, Trump accused Juncker of being a “brutal killer”, presumably with regard to the EU’s trade policies. |
| Trump has repeatedly complained about the EU’s 10% tariff on imported vehicles. The US has a 2.5% levy on imports of passenger vehicles. The EU has responded that in other areas, Brussels is more generous than the US. | Trump has repeatedly complained about the EU’s 10% tariff on imported vehicles. The US has a 2.5% levy on imports of passenger vehicles. The EU has responded that in other areas, Brussels is more generous than the US. |
| On Monday, at an event to celebrate US-made goods, Trump told his audience: “They’re coming in to see me Wednesday and we’ll see if we can work something out. Otherwise, we’ll have to do something with respect to the millions of cars that they send in every year. Maybe we can work something out.” | On Monday, at an event to celebrate US-made goods, Trump told his audience: “They’re coming in to see me Wednesday and we’ll see if we can work something out. Otherwise, we’ll have to do something with respect to the millions of cars that they send in every year. Maybe we can work something out.” |
| Trump is reportedly ready to apply a 20% tariff on imports of cars and car parts. Juncker will seek to avert such a unilateral move, by making an offer, but only if the US lifts its punitive tariffs on European steel and aluminium. | Trump is reportedly ready to apply a 20% tariff on imports of cars and car parts. Juncker will seek to avert such a unilateral move, by making an offer, but only if the US lifts its punitive tariffs on European steel and aluminium. |
| In the unlikely event that Trump agrees, Juncker will suggest that significant makers of cars and car parts, including Japan and South Korea, negotiate a multi-lateral agreement with the aim of reducing tariffs on those products to zero. | In the unlikely event that Trump agrees, Juncker will suggest that significant makers of cars and car parts, including Japan and South Korea, negotiate a multi-lateral agreement with the aim of reducing tariffs on those products to zero. |
| A second proposal would be for a TTIP-lite deal, reducing the Transatlantic Trade and Investment Partnership, a comprehensive trade agreement between the US and the EU pursued by Barack Obama and dumped by Trump, to a limited one focused only on industrial tariffs. | A second proposal would be for a TTIP-lite deal, reducing the Transatlantic Trade and Investment Partnership, a comprehensive trade agreement between the US and the EU pursued by Barack Obama and dumped by Trump, to a limited one focused only on industrial tariffs. |
| There are signs that the trade policies launched by Trump are causing the US economy some difficulty, and creating political problems in Washington. | There are signs that the trade policies launched by Trump are causing the US economy some difficulty, and creating political problems in Washington. |
| On Tuesday, the US administration was forced to promise a $12bn aid plan to subsidise farmers who have been hit by retaliatory tariffs imposed China and the EU. | On Tuesday, the US administration was forced to promise a $12bn aid plan to subsidise farmers who have been hit by retaliatory tariffs imposed China and the EU. |
| Republican senator Ron Johnson voiced the views of free traders in Trump’s party, saying: “This is becoming more and more like a Soviet-type of economy here: commissars deciding who’s going to be granted waivers, commissars in the administration figuring out how they’re going to sprinkle around benefits. I’m very exasperated. This is serious.” | Republican senator Ron Johnson voiced the views of free traders in Trump’s party, saying: “This is becoming more and more like a Soviet-type of economy here: commissars deciding who’s going to be granted waivers, commissars in the administration figuring out how they’re going to sprinkle around benefits. I’m very exasperated. This is serious.” |
| The EU is also looking to raise the temperature should Trump hit European car manufacturers with 20% tariffs on €10bn of US products or going for a lower tariff level on a longer list of €18bn of US goods. | The EU is also looking to raise the temperature should Trump hit European car manufacturers with 20% tariffs on €10bn of US products or going for a lower tariff level on a longer list of €18bn of US goods. |
| The European commission’s most senior trade official, Cecilia Malmstrom, who is joining Juncker on the visit, told the Swedish newspaper Dagens Nyheter: “We hope that it doesn’t come to that and that we can find a solution. If not, the EU Commission is preparing a rather long list of many American goods. It would be around $20 billion.” | |
| Juncker, who has been more emollient in his language with regard to Trump than Donald Tusk, the European council president, will give a speech entitled: transatlantic relations: at a crossroads, after his meeting in the White House. Tusk has accused Trump of forging a new American approach to foreign relations in which there are no friends, only foes. | Juncker, who has been more emollient in his language with regard to Trump than Donald Tusk, the European council president, will give a speech entitled: transatlantic relations: at a crossroads, after his meeting in the White House. Tusk has accused Trump of forging a new American approach to foreign relations in which there are no friends, only foes. |
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