U.S. President Donald Trump and President of the European Commission Jean-Claude Juncker speak about trade relations in the Rose Garden of the White House in Washington
The U.S. and the European Union have reached a new pact on trade, U.S. President Donald Trump and European Commission President Jean-Claude Juncker announced Wednesday.
Addressing reporters at the White House, Trump said the pair agreed to work towards "zero tariffs, zero non-tariff barriers and zero subsidies on non-auto industrial goods."
The European Union Commission is preparing to introduce tariffs on $20 billion of U.S. goods if Washington imposes trade levies on imported cars, EU trade commissioner Cecilia Malmstrom told the Swedish newspaper Dagens Nyheter on Wednesday."We hope that it doesn't come to that and that we can a solution. If not, the EU Commission is preparing a rather long list of many American goods. It would be around $20 billion," she said.Any new European tariffs will not be directed at specific American states, she said. "No, now it's more general goods such as agricultural products, machinery, high-tech products and other things," she said.The US is bigger than the White House, German foreign minister saysShe said that she didn't think U.S. Treasury Secretary Steven Mnuchin's proposal to drop tariffs, non-tariff trade barriers and subsidies was serious, pointing out that the U.S. has laws and subsidies protecting American industries."We tried earlier in TTIP negotiations to make the United States loosen those laws. It was completely impossible. They did not move a millimeter," Malmstrom told Dagens Nyheter.Malmstrom is part of EU delegation in Washington for talks on Wednesday on a long-term trade deal."Basically, I'm an optimistic person, but heading in to this I'm moderately optimistic. But one must always try." 
EU preparing counter-tariffs on $20 billion of US goods
European Commission President Jean-Claude Juncker will not arrive in the United States for talks with U.S. President Donald Trump with a specific trade offer, the Commission said on Monday.Juncker will travel to Washington on Wednesday for talks focused on trade tensions after the U.S. imposition of tariffs on EU steel and aluminium and Trump's threats to extend those measures to European cars.Trump's top economic adviser, Larry Kudlow, has said he expected Juncker to come with a "significant" trade offer, but the Commission on Monday that would not happen."I do not wish to enter into a discussion about mandates, offers because there are no offers. This is a discussion, it is a dialogue and it is an opportunity to talk and to stay engaged in dialogue," Commission spokesman Margaritis Schinas told a news conference.Jeremy Hunt warns of no-deal Brexit riskTrump has repeatedly complained about the European Union, pointing to the higher duties it applies for car imports and describing the bloc as a "foe" in trade.EU officials have said that, while EU import duties for cars are heavier than those of the United States, for other products, such as trucks, U.S. rates are higher. They also say cutting duties for cars could only be part of a broader trade deal.European Trade Commissioner Cecilia Malmstrom, who will accompany Juncker, said last week that the European Union was preparing a list of U.S. products to hit if the United States imposed tariffs on EU cars.Schinas said Juncker was "very prepared" to set out European arguments."This is an occasion to de-dramatise any potential tensions around trade and to engage in an open and constructive dialogue with our American partners," he said. 
EU's Juncker will not bring offer to Trump trade talks
The trading partners will also work to reduce trade barriers on services, chemicals, pharmaceuticals, medical products and soy beans. Services will also be addressed, Trump said.
The U.S. and EU trade relationship is valued at roughly $1 trillion dollars.