The two world leaders thrashed out a deal on Wednesday that may put an end to the ongoing trade war between the US and the European Union.
On top of that, the EU sided with Trump over the recent imposed tariffs on Chinese imports, and agreed to cooperate with the US to end Beijing’s unfair trade practices.
The official, who wished not to be named, told Reuters: ”They want to work together with us on China and they want to help us reform the WTO (World Trade Organization).”
The two powers have previously worked together on measures to deal with theft of company secrets by Chinese organisations.
The White House official added regarding the agreement: ”The EU came into the conversation and they were open to the proposals we had made about getting rid of tariffs, non-tariff barriers and subsidies.”
After crunch talks with the European Commission President, Trump said both sides had agreed to “work together towards zero tariffs”.
And he announced the EU had agreed to ease restrictions on American exports of liquefied natural gas and soybeans to Europe.
Meanwhile, Mr Juncker also claimed victory, saying a pledge by the US to hold off on tariffs against cars built in the EU was a “major concession”.
Following talks at the White House, the pair appeared in the famous Rose Garden to announce the “launch a new phase in the relationship between the United States and EU”.
Trump said trade between the two sides would now be “more reciprocal”.
The US and European Union have been embroiled in a trade war in the past couple of weeks which started after the American firebrand imposed tariffs on steel and aluminium imports.
Brussels reiterated with taxes on American-made products including jeans, bourbon and motorcycles.
The US President had threatened to widen the trade war by slapping levies on cars made in the European Union – a move which would have hit Germany’s economy particularly hard.
But following the talks on Wednesday, the US President said the two sides had agreed to “resolve the steel and aluminium tariff issues”.
The markets welcomed the deal.
Following the talks, the Dow Jones Industrial Average rose 172.16 points, or 0.68 percent, while the tech-heavy Nasdaq added 91.47 points, or 1.17 percent.
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