President Trump is set to meet with EU President Jean-Claude Juncker today, with trade tensions topic #1, but CEI Senior Fellow Iain Murray warns that impending American tariffs on EU goods will be terrible for all concerned, including the auto industry.
“Jean-Claude Juncker can expect a frosty reception in the White House today. He isn’t a head of state but instead represents a large regional trade bloc that provides preferences for its members at the expense of the rest of the world. For example, the Common Agricultural Program is a long-standing protectionist measure that prevents imports of agricultural goods from America and the developing world alike. As such, President Trump must have known that his tweeted offer for both sides to drop all trade barriers was going to be impossible for Mr. Juncker to agree to. Unfortunately, all increased tariffs on EU goods and services is going to do is get us into a retaliatory cycle whereby consumers, workers, and producers on both sides of the Atlantic will be harmed. The world – including both the EU and US – needs to come to its senses and engage in multilateral talks aimed at getting rid of new tariffs and long-standing trade barriers like the CAP.”
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