USA and Europe reach trade truce. For now

SAUL LOEB via Getty Images            
                    US President Donald Trump and European Commission President Jean Claude Juncker at the White House

The two sides agreed to expand European imports of USA liquified natural gas and soybeans and lower industrial tariffs on both sides, Mr Trump said.

The two sides, he said, agreed to hold off on further tariffs and work toward dropping the existing ones on steel and aluminum, while they tried to work out a deal to eliminate tariffs, non-tariff barriers and subsidies on industrial goods, excluding autos.

Mr Trump tweeted that China was specifically targeting USA farmers with retaliatory tariffs because "they know I love & respect" them.

The assistance will go into effect in September, months after President Donald Trump ordered Agriculture Secretary Sonny Perdue to prepare some options, the Washington Post reported.

"We have identified a number of areas on which to work together", Juncker said at the joint conference. On Tuesday, the Trump administration rolled out a multibillion dollar aid package for farmers and ranchers hurt by protectionism. Markets jumped in the closing minutes of the day when word of a potential deal began to circulate. The resolution was seen by many as a signal of restiveness within the GOP on Trump's handling of trade. "And President Trump is the first one to call them on that".

"Trump is getting serious criticism from the Republicans in the Senate".

President Trump's tariff threats against China, Canada, Mexico and the European Union prompted immediate threats of retaliation.

Trump has become increasingly defiant in his trade strategy, following his own instincts and intuition and eschewing advice from his inner circle.

Export statistics for May showed a surge of stockpiling of United States goods by Chinese importers, particularly crude oil and soybeans, as they raced to buy before Beijing's retaliatory tariffs took effect, driving up costs.

President Trump lamented decades of USA trade policy as he addressed steelworkers in IL.

On Thursday, the president will visit Granite City, Illinois, the home of a U.S. Steel Corp. mill that has reopened after he imposed tariffs on steel imports. That has prompted retaliatory action from countries that farmers and others worry will hurt their bottom lines.

"It's a policy of victimization: 'Other people have been taking advantage of the United States for years". He hoped "free, fair and reciprocal trade is in our near future".

All major automakers, including Ford Motor Co, which will have an F-150 pickup truck on display at the White House exhibit, oppose imposing vehicle and parts tariffs of up to 25 per cent.

"This is a real vindication that the president's trade policy is starting to work", Ross said.

"It doesn't set the scene for a very fruitful meeting", she said, adding that she only expects the meeting to provide "some sort of language that's mutually accepted". "Negotiations are going really well, be cool". "End result is, it's going to cost the consumer more".

Trump's enthusiasm about Wednesday's trade negotiations are a significant change from remarks he made on Twitter just 24 hours earlier, when declared "tariffs are the greatest". The only group that offered measured support was the United Auto Workers.

"Since the price decline of US soybeans in June 2018, the European Union is anyway purchasing more soybeans from the United States for economic reasons and there are no European Union import restrictions on USA soybeans which can be removed", said Stefan Vogel, head of agricultural commodity markets research at Rabobank, a Dutch bank that specializes in lending to the agriculture sector. Trump said he is working on the steel and aluminum tariffs.