The Beginning of a Trump Trade Deal? Germany is prepared to lower tariffs. James Freeman
https://www.wsj.com/articles/the-beginning-of-a-trump-trade-deal-1529521189
Like most of the world’s investors, this column sees mostly downside from President Donald Trump’s confrontations with allies over the terms of trade. But the best news of the day is an intriguing possibility for trade peace and more open commerce with our friends in Europe.
At the rancorous G7 meeting recently in Canada, Mr. Trump suggested tariff-free trade among the participants. The proposal received no public endorsement from any of the assembled leaders of Europe or Japan. But maybe the beautiful idea isn’t dead yet. The Journal reports:
Germany’s leading auto makers have thrown their support behind the abolition of all import tariffs for cars between the European Union and the U.S. in an effort to find a peaceful solution to the brewing trade war.
The U.S. ambassador to Germany, Richard Grenell, brought the proposal for a broader industry trade pact to the Trump administration on Wednesday, according to people familiar with the situation.
That would mean scrapping the EU’s 10% tax on auto imports from the U.S. and other countries and the 2.5% duty on auto imports in the U.S. As a prerequisite, the Europeans want President Donald Trump’s threat of imposing a 25% border tax on European auto imports off the table. CONTINUE AT SITE
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