Valliere said it was telling that auto tariffs were not specifically mentioned. Analysts have said there appears to be disagreement in Europe on the topic, and the Trump administration would like to see Europe drop its tariffs of 10 percent on U.S. cars.
The major averages rallied Wednesday afternoon on early reports of the trade agreements.The Dow Jones Industrial Average popped more than half a percent to a session high Wednesday afternoon. The NASDAQ rose about 1 percent. The euro also rose, hitting a session high against the dollar.
The agreement surprised policy experts in Washington and Brussels, many of whom had been closely monitoring Trump’s escalating rhetoric on trade. On Tuesday, Trump wrote a tweet that appeared to dismiss the possibility of a before the meetings had even begun. “The European Union is coming to Washington tomorrow to negotiate a deal on Trade,” he tweeted. “I have an idea for them. Both the U.S. and the 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 they won’t!”
Juncker’s visit was a bright spot in the increasingly gloomy outlook for U.S.-European relations that have been frayed by Trump’s trade wars, his fondness for Russian President Vladimir Putin and his skepticism of multilateral institutions like NATO and the European Union.
In announcing Juncker’s visit, the White House said in a statement on July 17 that the two men would discuss “a wide range of priorities, including foreign and security policy, counterterrorism, energy security, and economic growth,” with a “focus on improving transatlantic trade and forging a stronger economic partnership.”
Trump’s own comments about Europe, however, have repeatedly stood in stark contrast to the White House message. “The European Union — outside of China and a couple of others — treats us, on trade, as badly as you can be treated,” Trump said during a May visit from NATO Secretary General Jens Stoltenberg. “They have trade barriers. Our farmers aren’t allowed, to a large extent, to sell their product into the European Union.”
According to Trump’s own Department of Agriculture, however, this is not true. On the contrary, the USDA reported that in 2017, American agricultural exports to the European Union totaled $11.2 billion, making Europe the fifth largest export market in the world for U.S. farmers.