Trump Says More Trade Between US, EU Will Benefit All

The U.S. and the European Union will work together to eliminate bureaucratic barriers and to move all non-auto industrial tariffs to zero, President Donald Trump announced at a Rose Garden press conference July 25. Trump said the EU is going to work to buy more soybeans, services, chemicals, pharmaceuticals and LNG. "They're going to be a massive buyer," he said, referring to the liquefied natural gas.

While trade talks on tariffs and barriers are ongoing, there will be no new tariffs implemented, Trump said. He had threatened repeatedly to use 20 or 25 percent auto tariffs against Europe. "We also will resolve the steel and aluminum issues," he said, and in turn, the EU would lift its retaliatory tariffs. European Commission President Jean-Claude Juncker, too, said there would be no more tariffs from the EU on the U.S. while negotiations are ongoing. Trump had said on Twitter less than 24 hours earlier that the EU wouldn't drop its tariffs, barriers and subsidies to zero.

The American International Automobile Dealers Association quickly responded to the news with celebration. "AIADA is pleased to see positive discussions between President Trump and the EU surrounding our trade differences," said AIADA CEO Cody Lusk in an emailed statement. "As I've said in the past, no one wins a trade war. While the President did not address the ongoing auto 232 investigation, AIADA's dealer members are optimistic that today's agreement will lead to progress in resolving auto trade differences, and continue to promote the principles of trade that have made the American auto industry so successful."

Immediately after the announcement, Trump was scheduled to meet with seven Republican senators and six Republican House members. The lawmakers are mostly from rural states or districts, but also include House Ways and Means Committee Chairman Kevin Brady of Texas and its Trade Subcommittee Chairman Dave Reichert of Washington state.