The EU and the US looking to avert a trade war

While Trump has set a sour mood for the meeting set for later today, by going into a trade war with the European Union, Washington would be opening a second front – a strategic mistake.

In his signature move, U.S. President Donald Trump took a downbeat view for his meeting with European Commission President Jean-Claude Juncker set for Wednesday, which is aimed at averting a trade war.

Taking to Twitter, on Tuesday night, Trump said the European Union and the United States should drop all barriers, tariffs, and subsidies.

“That would finally be called Free Market and Fair Trade!” tweeted Trump. “Hope they do it, we are ready – but they won’t!”.

Earlier, Trump had accused the EU of unfair trade practices and had threatened to raise tariffs on cars imported from the European Union.

The United States is already fighting a trade war against China. Going by history, fighting a two front war, has always led to defeat.

Last week, European Trade Commissioner Cecilia Malmstrom, who will accompany Juncker, had said the EU has a list of U.S. products whose import tariffs to the EU could be hiked if the United States insists on fighting it out instead of a more civil negotiated settlement.

On Monday, the European Commission stated, Juncker will not arrive in Washington with a specific trade offer.

“I do not wish to enter into a discussion about mandates, offers because there are no offers,” said European Commission’s spokesman Margaritis Schinas to a news conference in Brussels.

As per Larry Kudlow, the economic adviser to the White House, he expected Juncker to come with a “significant” trade offer.

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