US President Donald Trump hosts European Commission chief Jean-Claude Juncker today for what is set to be a tense face-to-face, with efforts to resolve a festering trade dispute between the two key economies seemingly deadlocked.
Speaking ahead of the White House talks, Juncker admitted he was "not very optimistic," while Trump kicked off the day with a combative series of tweets vowing "no weakness" in the multiple fights he has launched with America's trade partners.
"I know Mr Trump pretty well," Juncker told German public broadcaster ZDF. "I have met him frequently and know how to deal with him." "We are here to explain ourselves and explore ways to avoid a trade war," he said, stressing that the European Union is "not in the dock -- we don't need to defend ourselves."
Juncker also renewed a promise of immediate retaliatory measures should
Trump make good on a threat to slap new tariffs on EU car imports.
Trump crowed yesterday that his latest threat had brought Europe to the negotiating table and called on both sides to "drop all Tariffs, Barriers and Subsidies!" - even though he said he doubted that the EU would agree.
Today, he doubled down.
"Every time I see a weak politician asking to stop Trade talks or the use of Tariffs to counter unfair Tariffs, I wonder, what can they be thinking?" Trump tweeted.
"Are we just going to continue and let our farmers and country get ripped off? Lost USD 817 Billion on Trade last year. No weakness!" That figure apparently refers to the US trade deficit in goods alone last year, which hit USD 810 billion last year, while the total deficit including services was USD 566 billion.
But at home, Trump is facing increasing criticism as consumers, farmers and businesses take a hit from the retaliatory measures imposed to counter the raft of US tariffs on steel, aluminum, and other products from China put in place in recent weeks.
EU Trade Commissioner Cecilia Malmstrom, who is accompanying Juncker, expressed some optimism that a solution could still be found, but also said the EU is drawing up a list of USD 20 billion in US products to be targeted for retaliation if the trip fails.
"We hope that this won't happen and that we can reach a solution," Malmstrom told the Swedish daily Dagens Nyheter (DN).
She said the "long list" of American goods would include machinery, agricultural and high-tech products, among others.
While Juncker is set to make a last effort to talk Trump out of the auto tariffs, which would hurt Germany's dominant carmakers, he warned that if the US moved ahead, "we are in a position to respond appropriately right away."
Brussels has already retaliated against the steel and aluminum tariffs, imposing punitive duties on more than USD 3 billion of US goods, including blue jeans, bourbon and motorcycles, as well as orange juice, rice and corn.
Canada, Mexico and China - the main target of Trump's trade offensive - have also hit back with steep duties on US goods, and have filed complaints against Washington at the World Trade Organization.
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