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Juncker visits Trump to curb trade war

Washington's threat to impose tariffs on European cars plans on the key meeting between the President of the European Commission and the United States

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Juncker visits Trump to curb trade war

Under threat of a growing trade war with United States, Europe deposited in President of European Commission, Jean-Claude Juncker, its few hopes of achieving an understanding with erratic Donald Trump. The meeting, on Wednesday at White House, between US president and community leader will serve to calibrate scope of open gap between Washington and Brussels. Although economic relationship will monopolize appointment, or tension issues, such as transatlantic security or nuclear agreement with Iran, are also expected to be addressed.

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The United States and Europe live more and more in parallel universes. While questioning liberal order erected seven decades ago, Trump moves away from his European partners and y admit that y must rely less on world's first power. Just two weeks after turbulent visit of Republican to Brussels, where he claimed in bad ways to NATO member countries an increase in military spending, aleccionóed Germany for its energy dependence on Russia and was asserting that "European Union He's an enemy, so he makes us into trade. " The confrontation contrasted with sympathy shown a few days later by Trump with Russian president, Vladimir Putin.

The Sword of Damocles hanging over meeting of Trump and Juncker is White House's threat to impose a 20% tariff on imported vehicles, which in case of EU would mean hitting a 50 billion dollar business with United States , particularly affecting German automobile industry.

It would be second phase of trade war that began in June when, under a controversial argument of national security, USA activated taxes on steel (25%) and aluminum (10%) from European Union, Mexico and Canada. In parallel, it has imposed or tariffs on China. The EU responded with its own reprisals to iconic sectors of US economy, such as Harley Davidson motorcycles or bourbon whiskey.

On eve of his meeting with Juncker, Trump had no qualms about calling EU a commercial "great abuser" and mocking, without mentioning names, negotiating zeal of some of U.S. partners to avoid new barriers. "They all come to White House," he bragged in a military act in Kansas City. "I told ' Em, we're going to impose tariffs on your cars." They said ' when can we introduce ourselves? ' When can we go re? Would it go well tomorrow? ' he said, amidst laughter of public.

A few hours later on Twitter, Republican advocated lifting all trade barriers between US and EU, but reality is that re are huge pitfalls in both blocs in face of any attempt to reach a free trade agreement. In anor morning's message, Trump had already emphasized his unilateral strategy: "A country that has treated United States unfairly in trade negotiates a fair pact or is hit with tariffs."

The European Union is coming to Washington tomorrow to negotiate a deal on Trade. I have an idea for m. Both U.S. and E.U. drop all Tariffs, barriers and subsidies! That would finally be called Free Market and Fair Trade! Hope They do it, we are ready-but y won't!

— Donald J. Trump (@realDonaldTrump) July 25, 2018

The New York billionaire, who came to White House with a protectionist discourse, makes most convenient interpretation of trade flows. For example, it minimizes 25% tax imposed by United States to foreign-made vans, and experts consider inflated 151 billion-dollar figure quoted Trump's trade deficit with EU.

Aware of transcendence of his attempt to placate trade war, Juncker has consulted strategy before Trump with leading European leaders and shortly before leaving for Washington spoke with German chancellor Angela Merkel, French President, Emmanuel Macron, Dutch prime minister, Mark Rutte, and Austrian chancellor, Sebastian Kurz. Trade is main litigation on table, although or sources of conflict between Brussels and Washington are likely to appear in conversation.

Both Juncker and rest of European Commission have refused to advance any content of debate. "It is intended to dedramatize political tensions and engage in an open and constructive dialogue", explained on Tuesday a spokesman for this institution, which aims to lower expectations on any particular initiative and frames meeting, Requested by Trump, within framework of a candid discussion.

European retaliation

Brussels, however, is clear that it is highly probable that US will end up applying dreaded tariffs on European cars. As it did after US measures against steel and aluminum, European institution, with exclusive powers over trade policy, will retaliate if that happens. At moment Brussels is focused on playing this last letter that Washington offers. But it also does not forget fate of or European leaders (including Merkel and Macron) in trying to deter, without success, Trump, for example, from withdrawing from nuclear agreement with Iran.

The meeting will run in two phases. First, re will be a bilateral meeting-- formula preferred by Trump--between two presidents. The discussion will n open to ors responsible. On European side, re will be a dozen people, including Trade Commissioner, Cecilia Malmström, who should outline any commercial strategy.

Whatever happens, Europe lives with enormous sorrow moment so low that it crosses relationship with United States. After interview with Trump, Juncker will attend Centre for Strategic and International Studies, a laboratory of ideas, to give a lecture with illustrative title of transatlantic relations, at crossroads. It will be a first examination of results of appointment in White House.

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