In a news conference on Wednesday, the President said the EU has agreed to buy "a lot of soybeans" and increase imports of natural gas from the U.S. European Commission President Jean-Claude Juncker says the two countries have agreed to hold off on implementing any more tariffs while they work to avoid a crippling trade dispute.
United States Treasury Secretary Steven Mnuchin announced on July 26 that Washington and Brussels will "immediately resolve" their dispute over USA steel and aluminium tariffs and subsequent European Union counter-measures. The breakthrough came after about three hours of talks, leading to their impromptu announcement in the Rose Garden.
House Republicans confronted two of President Trump's top economic advisers on trade on Thursday, while also breathing a sigh of relief after the administration's decision to begin easing tensions with Europe a day earlier.
The interruption of hard won trade relationships would be disruptive and possibly hard to resume in the long term.
Meanwhile, Trump has - at least temporarily - backtracked on his own threats of sanctions against European cars, steel and aluminum, which had also stoked unease at home. BMW climbed as much as 5.5% yesterday and was up 3.2% in Frankfurt as of 12:15pm. BMW gained 4.4%, Daimler 2.8% and Volkswagen 4.0% in Frankfurt.
On the effect the trade policy is having on farmers and other American workers, he asserted that more jobs are being created than otherwise. Ulrike Demmer, a deputy government spokeswoman, reaffirmed Germany's backing for the Commission in future negotiations. Likewise, the EU's imposition of high value added tax on most imports is essentially a mini-tariff in and of itself. That would cut USA imports of European cars and vehicle parts in half, the commission forecast.
After a meeting at the White House, Mr Trump and European Commission president Jean-Claude Juncker said the talks would also seek to "resolve" United States tariffs on steel and aluminium and Europe's retaliatory duties - marking a step back from Mr Trump's import protections for USA metal producers.
But in reaching an agreement with Junker, Trump has proved that the European Union simply could not afford to lose its American trading partner, especially given the fact that Brussels has displayed stereotypical caution when it comes to forging a more free, fair and open trading agreement with a Chinese economy that is rapidly opening up its own doors at historic levels. "We are not going to turn into a Soviet style economy". "It is substantial. It will really help stabilize the farm income situation, as well as agricultural lenders in the local community".
Trump delays proposed Putin meeting until 2019
The White House did not respond to multiple requests from Yahoo News seeking clarification. Ushakov did not explain why Moscow had not yet accepted Trump's invitation.
"The solutions set out go in the right direction but a healthy dose of scepticism remains".
Some farmers are going to have some tough conversations with their bankers, said John Heisdorffer, president of the American Soybean Association and himself a grower in Keota, Iowa.
The truce may prove to be short-lived if the two sides can't resolve their differences over trade in vehicles and auto parts.
German Foreign Minister Heiko Maas said - contrary to Trump's description of the European Union earlier this month as a trade "foe" - that Europe and the United States were partners and allies.
The Peterson Institute for International Economics estimates American farmers face 25 percent tariffs on more than $12 billion worth of soybean exports to China.
Trump said Europe agreed to increase purchases of U.S. liquefied natural gas and lower trade barriers to American soybeans, aiding USA farmers and the energy sector.
Also on Thursday, Trump's top trade official, Robert Lighthizer, was criticized by Republican and Democratic lawmakers after he told them in a hearing that the administration is not now considering providing federal aid to small businesses, manufacturers or any other sector aside from farmers who might be hurt by the trade war.