US President Donald Trump has announced he has reached an agreement with the European Union (EU) to move forward together toward a "zero tariff" situation, thus avoiding a trade war, after meeting the president of the European Commission, Jean-Claude Juncker.
Jean-Claude Juncker, the president of the European Commission, said that the EU and the US will "hold off further tariffs and reassess existing tariffs on steel and aluminum".
"If we could have no tariffs, and no barriers, and no subsidies, the United States would be extremely pleased", he said as he met Mr. Juncker in the Oval Office.
While the USA president can claim his aggressive approach is working, consumers, farmers and businesses are feeling the pain from the retaliatory measures imposed to counter the raft of U.S. tariffs on steel, aluminum, and tens of billions of dollars in products from China put in place in recent weeks.
Chinese President Xi Jinping said at an worldwide summit in South Africa that the world faces "a choice between cooperation and confrontation", in remarks that criticized escalating USA tariffs on goods from China and other major trading partners.
President Donald Trump has announced plans for a farm bailout to handle backlash to his trade deal.
Though details remain sketchy, it seems too soon to call this a truce in the trade war-more like an agreement to stop further escalations of the conflict, at least for now, in the hopes that a truce can be worked out.
Under the three USDA aid programs, farmers will either receive direct payments or sell their excess production to the government to be used for food banks and other food aid, Perdue said.
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The CCC will also use its Charter Act authority for a Trade Promotion Program administered by the Foreign Agriculture Service (FAS) in conjunction with the private sector to assist in developing new export markets for farm products.
"We have identified a number of areas on which to work together", Juncker said at the joint conference.
Some of fruits to be hardest hit by the trade policies are cherries - which are now facing a 50% tariff going into China - and apples, which have been hit by higher tariffs in China and Mexico, with India set to also implement additional duties next month in response to US duties on steel and aluminium imports. The administration clobbers farmers with an unnecessary trade war then attempts to assuage them with taxpayer handouts.
Colorado's Agriculture Commissioner, Don Brown, says the value of corn and wheat has already dropped more than 20 percent since the tariffs took effect.
The president insists his tough trade policies will pay off long-term, forcing other countries to concede and remove tariffs on USA goods.
Following the announcement, European Union trade commissioner Cecilia Malmstrom said the Washington-Brussels relationship had "turned a page". After Beijing imposed tariffs on $34 billion worth of American goods, Trump threatened to impose tariffs on $500 billion worth of Chinese products. Negotiations are going really well, be cool.
On a call explaining the assistance, the administration said the $12 billion value of the package was in line with the estimated $11 billion hit to farmers from recent trade tensions.
"Are the three majors that are going to be implemented going to affect farmers fairly or are corporations going to be the benefactors of those major.I think they're also really anxious about a prolonged trade war", said Julie Keown-Bomar, Executive Director for the Wisconsin Farmers Union.