The United States President, Donald Trump, and the European Commission president, Jean-Claude Junker, are set to meet one last time to discuss the most recent tariffs issued by the States. However, the US president took to twitter before the meeting to state that it was the EU that stood against free trade. Earlier this year, the US imposed tariffs on EU steel and aluminum exports and more tariffs on Chinese exports. He continues to threaten to issue new tariffs on other imported items such as European cars. His reasoning is that there is an imbalance in trade between the two nations.
The US president’s tweet reads as followed: “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!” And later he followed up with this tweet: “The European Union is coming to Washington tomorrow to negotiate a deal on Trade. I have an idea for them. Both the US and the EU drop all Tariffs, Barriers and Subsidies! That would finally be called Free Market and Fair Trade! Hope they do it, we are ready - but they won’t!”
Trump and Juncker get along well on a personal level, the EU does not have high hopes this meeting of the two will change much of anything. Especially after the G7 conference when Trump accused Juncker of being a “brutal killer” in regards of the EU trade policies. One of the EU’s tariffs on the US is the ten percent on imported American vehicles. The US has a 2.5% levy on imports of passenger vehicles. The next tariff Trump wants to impose is 20% on imports of cars and car parts. Junker is looking to avoid such, but only if the US lifts the tariffs off on European steel and aluminum. Junker also believes if he can negotiate the proposed tariffs not to happen, then automobile manufactures should come together and make a multi-lateral agreement on reducing all tariff on cars and their products to zero. The US economy has shown sign of struggling since the tariffs. The EU is prepared if the negotiations do not go well.