Administration Earmarks Up to $12 Billion for Agriculture to Offset Trade War

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The US President's comments came after a meeting with European Commission President Jean-Claude Juncker amid pressure in the US over the impact tariffs are having on the country's farmers after he unleashed a trade war.

The two would work for zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto goods, he said.

Shares of BMW AG, Volkswagen AG, Fiat Chrysler Automobiles NV and Daimler AG jumped on Thursday following a pledge from the two leaders to "hold off on other tariffs" while they negotiate a deal to expand European imports of USA liquefied natural gas and soybeans and lower industrial levies.

Meanwhile, farmers inspecting crops in North Dakota said they preferred not to rely on the aid but we're optimistic that Trump would find a long-term solution.

The commission, which manages trade relations on behalf of all 28 nations in the European Union, is preparing a list of retaliatory measures on American goods worth $20 billion should the US impose auto tariffs, Malmstrom said.

Jean-Claude Juncker
Commission president Jean Claude Juncker will join trade commissioner Cecilia Malmstrom at the meeting

The Trump administration has unveiled a $12bn (£9.1bn) plan aimed at helping USA farmers hurt by the intensifying trade war.

In saying soybean imports would also rise, Juncker was effectively just reflecting market conditions, as Chinese curbs have driven down the price of US soy, making it attractive to European farmers who use it in animal feed. As a result, US wheat exports to Mexico fell 38 percent in the first five months of this year, according to Reuters.

President Trump and the European Union appear to be backing away from a trade war.

The EC chief, meanwhile, hailed the trade agreement, which includes reducing tariffs by both parties and easing the bilateral frictions that had arisen in recent months.

The president also said that they would "resolve" the issue of retaliatory tariffs in addition to addressing the steep steel and aluminum tariffs that Trump imposed on the European Union in May.

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Military experts have long warned that Iran could use such militias to attack USA troops in places such as Iraq and Syria. He also said the government has "heartlessly repressed its own peoples human rights, dignity and fundamental freedoms".

The EU, China, and Canada have hit billions of U.S. goods with tariffs in response, causing the White House on Tuesday to propose $12 billion in emergency aid to farmers hurt by such retaliatory measures. Those affected economies have in turn targeted USA agricultural products, including soybeans, dairy, meat, produce and liquor.

In 2017, Chinese companies invested $38 million in Arkansas, mostly in industrial machinery and equipment manufacturing, according to Rhodium Group, a consultancy that tracks investment flows between China and the US.

He said the two sides also agreed to work together to reform the World Trade Organization, which Trump has vehemently criticized as being unfair to the U.S.

Republican lawmakers who've grown anxious about Trump's trade strategy expressed cautious optimism.

"The aim is to figure out what the ask is, we don't yet have a clear picture of what the administration wants", the official said. The president is also weighing additional tariffs on domestic autos and automobile parts, a topic expected to be discussed at length when he meets Juncker on Wednesday.

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Secretary of State Mike Pompeo , adjusts his headphone during a news conference in Kabul, Afghanistan July 9, 2018. They met to discuss the return of US service members' remains missing since the Korean War.

As he headed into the meeting, Mr. Trump shrugged off intense criticism from business leaders, farmers and his own GOP lawmakers that he was igniting a trade war that hurts the US economy.

"I think everybody sort of changed what they were going to say", said Sen.

He's threatening to use the national security justification again to slap tariffs on imported cars, trucks and auto parts, potentially targeting imports that a year ago totalled US$335 billion ($494b).

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