Trade deal with EU trade greater in scope than expected

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Since Commerce Secretary Wilbur Ross nailed a 10 percent tariff on aluminum and 25 percent on steel, saying it would help US manufacturers, both industries have been hurt badly.

"Imposing tariffs will increase costs for consumers, lessen consumer choice, lower consumer demand, reduce vehicle and light truck production and sales, lower investment levels, and lead to job losses in the USA auto sector", said Matt Blunt, president of the American Automotive Policy Council, in June.

"We're all upset. We're all losing money", Heck told CBS News.

To make matters worse, Trump is threatening to slap a 20 percent tariff tax on all European cars imported into the US, and is stepping up his trade-breaking threats on two of our biggest trading partners, Canada and Mexico.

"They have gone down by two dollars a bushel".

"Our biggest exposure, our biggest unmitigated exposure is really steel and aluminum when you look at all of the commodities", said GM Chief Financial Officer Chuck Stevens on Wednesday.

President Donald Trump's meeting with European Commission President Jean-Claude Juncker on Wednesday was expected to be contentious, coming less than two weeks after the former called the EU a "foe" that "clobbered" the US on trade.

On Thursday, he took another victory lap during a speech to steel workers in IL.

European capitals on Thursday welcomed the trade truce announced by the EU and United States but doubts lingered over its feasibility and the changing moods of President Donald Trump. "Sounds like Trump has caved in on his ridiculous tariffs to the European Union". The bulk of the funds will be given to farmers and producers of products directly hit by retaliatory tariffs, including soybeans, corn, and wheat.

The EU is the world's second largest soybean importer after China.

Nine major agriculture associations voiced support for President Donald Trump's plan to aid American farmers impacted by retaliatory tariffs.

He says, "If you don't have steel, you don't have a country".

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The outcome seemed a victory for Mr. Trump, who had assured supporters that his confrontational trade strategy would bear fruit, and who appears to have conceded little in the talks with the EU.

"If I have learned one thing from almost 20 years in Brussels, it is that the bully boys of the EU Commission only respect one thing - brute force".

Responding to a question, Ross said it is very hard to judge how long negotiations will continue.

USA stocks closed the day mostly lower on Thursday, despite rallying after the announcement, as investors were cautious that the trade threat had fully receded. But that's because they generally have one meeting and then pause for a month, have another meeting.

One thing all analysts can probably agree on - do not count your trade truce chickens just yet. But the only agreement reached was that for the time being, both sides would refrain from escalating the trade conflict that erupted when the Trump Administration slapped new steel and aluminum tariffs on European Union powers and other countries around the globe. Farmers are struggling. Net farm income is down nearly 50 percent since 2013. The EU has been readying retaliatory taxes on USA products. Using food in a trade dispute is a lose-lose.

But Trump's war on global trade doesn't end there. Jobs there mean dozens more at steel-processing plants throughout the city that bend, cut, coat or reshape the raw product, said James Amos, Granite City's economic development director.

"But as is often said, the devil is in the details".

Punishing US metals tariffs angered Washington's major trading partners including the European Union and sparked retaliation against important American exports, spooking global stock markets.

For instance, the USA said in May it had trade war with China on hold as both countries agreed to execute a framework for increasing US's agriculture and energy exports after high-level talks in the same month.

The U.S. Trade Representative did not respond to requests for the latest information about where negotiations stand. "It was a failed government policy in the first place in the form of these unnecessary tariffs that are doing the damage, and now we are forcing taxpayers to send a cheque".

Early in the week, the Trump administration came under fire after announcing a $12 billion subsidy program for farmers, especially soybean farmers, hurt by its own trade policies.

He said: "Look what happened, after all the bombast and bluster - the European Union went scurrying over to Washington and have backed down". "President Juncker is working to avert new tariffs".

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