The President has come through yet again with another savvy trade announcement with the potential to help the United States grow economically. This time, it isn’t Canada or Mexico, and he isn’t trying to shift business back home. Instead, he’s working out a compromise with the EU that benefits both countries.
• The decision to compromise was made only after careful consideration from both US and UK leaders. Both agree that chasing after tariffs and starting an “all-out trade war” is pretty much the worst thing that can happen right now.
• Trump and European Commission Chief, Jean-Claude Juncker, came together just a few days ago to publicly announce the decision in a live conference with the press. Both agreed to “work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods.”
• In exchange for Trump’s favorable compromise, the UK is willing to give us something back. Juncker revealed an EU-wide plan to buy more American natural gas while also raising soybean imports. “The EU is going (…) to buy a lot of soybeans from our farmers, primarily in the Midwest,” he explained.
• Trump also called it a “new phase in the relationship” between the two countries as well as a “very big day for free and fair trade.” Juncker agreed, stating that it was a “constructive meeting.” Both parties are looking forward to new beginnings with lucrative benefits for all sides.
• That said, our President stayed true to his promises – he isn’t giving the UK free reign to flagrantly ignore the rules. The 25 percent tariffs currently in place on steel and 10 percent tariffs in place on aluminum will remain firmly in place, driving business back home where it belongs.