Wednesday, July 25, 2018

BREAKING Europeans Agree to Talk About Lowering Industrial Traiffs

This is a developing story. Return to this post for updates.


Non-scheduled President Trump- European Commission President Jean-Claude Juncker press briefing about to be held.


Trump secures concessions from EU to avoid trade war; EU agrees to import more soybeans, to talk about lowering industrial tariffs.


Via the Wall Street Journal:

 [A] European official in the room said European Commission President Jean-Claude Juncker and his top trade official Cecilia Malmström agreed to work with the U.S. administration to lower industrial tariffs on both sides, increase LNG exports and soy beans to Europe, and align regulatory standards to allow for medical devices to have better market access in Europe, the official said.

Both delegations were still fine tuning language in a common statement on car tariffs, the official said.

A joint news conference between Mr. Trump and Mr. Juncker was hastily being organized as the meeting was coming to an end.



Trump sayshe  has agreed with Juncker to "work together" towards zero non-auto tariffs and zero subsidies.


Trump says EU will buy more LNG and  "lots of" soybeans.

Sounds like managed trade.


Trump fake out on EU soybean deal purchases caught:

From Bloomberg a month ago:

While looming tariffs are likely to curb American exports of the commodity to China, opportunities are opening up in the European Union, the world’s second-largest importer.

The dispute has boosted prices in Brazil, the top shipper, forcing EU processors to look elsewhere for supplies. That’s likely to mean that the U.S. will overtake Brazil as the biggest seller to the 28-nation bloc next season, according to Rabobank International Ltd.


  1. It would be great if Trump’s continued advocacy of tariffs ended up rendering them unpopular. That’s some 4d chess I could get behind.

  2. God Bless Donald Trump, Man of the People, Defender of Free Markets

  3. Trump outsmarts the liberturds yet again!

  4. --- Trump says EU will buy more LNG and "lots of" soybeans.

    Sounds like managed trade. ---

    Indeed. Also, who the hell cares if the EU is going to buy more soybeans from US farmers? Only jingoists would, even while Orange dude fondles and molests their wallets. In the meantime the other tariffs are wreaking havoc with supply chains and consumer prices.

  5. Hasn't he made multiple comments about no tariffs being the best? My view for awhile has been that he is using this as a cudgel to move toward freer trade. I guess now we wait.

    1. The case for free trade -- to benefit consumers -- is unilateral. We could have free trade tomorrow if the U.S. dropped all tariffs. You don't need a cudgel to force action within your control, unless perhaps you're a masochist.

      Tariffs are a way to screw consumers for the benefit of a few connected producers. Trump is holding U.S. consumers hostage to benefit his crony producer buddies.

    2. It does really concern me that Trump makes comments like “we’re getting screwed on trade with China.” It’s true that Chinese tariffs cause some harm to US exporters, but the way he couches it makes it sound like the Chinese are deriving some kind of advantage over the US from what is in reality a self-destructive policy.

      Maybe this is just part of his madman approach to make it look like he’s not bluffing, but I don’t have much faith that he comprehends the economic (or moral) problems with tariffs.

  6. It is quite amazing that this far into Trump's Presidency, the tactics he continually uses go over the heads of the pundits and talking heads.
    Panicky posts garner far more clicks than logical, well-thought out ones.
    Let's just say this news is absolutely unsurprising to me and anyone else who is smart enough to see the tactics Trump uses to get his desired outcome.

    1. Re: Rob,

      Yeah, right.

      "Europe already imports soybeans for ***free***, and the European market isn't big enough to make up for China anyway.

      [...T]he European Commission doesn't actually have authority over how many soybeans Europe imports. It doesn't procure soybeans for European markets and it doesn't tell European businesses where to buy their soybeans.

      [...] If the Trump-Juncker agreement would lower European tariffs on American-grown soybeans, for example, that might do the trick of getting Europe to buy more American beans.

      Except, well, the European Commission currently ****doesn't charge any tariffs**** on American soybeans.

      [...] In 2016, the most recent year for which full data are available in the United Nations Food and Agriculture Organization database, China imported more than 86 million tons of soybeans while Europe imported just under 19 million tons.

      [A]ll of this posturing ignores one simple fact: Even if Europe did somehow manage to buy up all the soybeans that won't be sold to China this year, American farmers would only be breaking even, not coming out ahead. [...]"


      You're dreaming if you think the New York con artist is playing 43 dimension chess.