President Donald Trump and European leaders pulled back from the brink of a trade war over autos Wednesday and agreed to open talks to tear down trade barriers between the United States and the European Union.
But the agreement was vague, the coming negotiations with Europe are sure to be contentious and the United States remains embroiled in major trade disputes with China and other trading partners.
In a hastily called Rose Garden appearance with Trump, European Commission President Jean-Claude Juncker said the U.S. and the EU have agreed to hold off on new tariffs, suggesting that the United States will suspend plans to start taxing European auto imports — a move that would have marked a major escalation in trade tensions between the allies.
Trump also said the EU had agreed to buy “a lot of soybeans” and increase its imports of liquefied natural gas from the U.S. And the two agreed to resolve a dispute over U.S. tariffs on steel and aluminum.
“It’s encouraging that they’re talking about freer trade rather than trade barriers and an escalating tariff war,” said Rufus Yerxa, president of the National Foreign Trade Council and a former U.S. trade official. But he said reaching a detailed trade agreement with the EU would likely prove difficult.
The tone was friendlier than it has been. During a recent European trip, Trump referred to the EU as a “foe, what they do to us in trade.” Juncker, after Trump imposed tariffs on steel and aluminum imports, said in March that “this is basically a stupid process, the fact that we have to do this. But we have to do it. We can also do stupid.”
On Wednesday, Trump and Juncker said they have agreed to work toward “zero tariffs” and “zero subsidies” on non-automotive goods.
Trump told reporters it was a “very big day for free and fair trade” and later tweeted a photo of himself and Juncker in an embrace, with Juncker kissing his cheek.
“Obviously the European Union, as represented by @JunckerEU and the United States, as represented by yours truly, love each other!” he wrote.
The president campaigned on a vow to get tough on trading partners he accuses of taking advantage of bad trade deals to run up huge trade surpluses with the U.S.
He has slapped taxes on imported steel and aluminum, saying they pose a threat to U.S. national security. The U.S. and EU are now working to resolve their differences over steel and aluminum — but the tariffs are still in place. And they would continue to hit U.S. trading partners like Canada, Mexico and Japan even if the U.S. and the EU cut a deal.
Whatever progress was achieved Wednesday could provide some relief for U.S. automakers. The escalating trade war and tariffs on steel and aluminum had put pressure on auto company earnings. General Motors had slashed its outlook, and shares of Ford Motor Co. and auto parts companies had fallen.
“Our biggest exposure, our biggest unmitigated exposure, is really steel and aluminum when you look at all of the commodities,” GM CEO Mary Barra said Wednesday.
Trump has also imposed tariffs on $34 billion of Chinese imports — a figure he has threatened to raise to $500 billion — in a dispute over Beijing’s aggressive drive to supplant U.S. technological dominance.
China has counterpunched with tariffs on American products, including soybeans and pork — a shot at Trump supporters in the U.S. heartland.
The EU is stepping in to ease some of U.S. farmers’ pain. Juncker said the EU “can import more soybeans from the U.S., and it will be done.”
Mary Lovely, a Syracuse University economist who studies trade, said, “The Chinese are not going to be buying our soybeans, so almost by musical chairs our soybeans are going to Europe.” The trouble is, China last year imported $12.3 billion in U.S. soybeans, the EU just $1.6 billion.
Trump’s announcement stunned lawmakers who arrived at the White House ready to unload concerns over the administration’s trade policies only to be quickly ushered into Rose Garden for what the chairman of the Senate Agriculture Committee called “quite a startling” development.
“I think everybody sort of changed what they were going to say,” said Sen. Pat Roberts, R-Kan.
Lawmakers said they still needed to see details of the agreement with the EU as well as progress on the other deals. But they said the breakthrough announcement was a step in the right direction.
“We have more confidence in him now than we did before,” said Rep. Mike Conaway, R-Texas, the chairman of the House Agriculture Committee.
The White House announcement came as the Trump administration announced a final rule aimed at speeding up approval of applications for small-scale exports of liquefied natural gas. The Trump administration has made LNG exports a priority, arguing that they help the economy and enhance geopolitical stability in countries that purchase U.S. gas.
Juncker said the two sides also agreed to work together to reform the World Trade Organization, which Trump has vehemently criticized as being unfair to the U.S.
The biggest news from the Trump-Juncker meeting is that it appears to have delayed an impending trade war over autos. Trump had threatened to tax imported cars, trucks and auto parts, potentially targeting imports that last year totaled $335 billion.
The European Union had warned that it would retaliate with tariffs on products worth $20 billion if Trump put duties on cars and auto parts from Europe.
But the auto trade war with Europe is on hold while the U.S. and EU engage in further trade talks. Daniel Ikenson, director of trade studies at the libertarian Cato Institute, warned that the fight could flare up again if Trump grows impatient with Europe.
“Auto tariffs are looming unless the EU buys more U.S. stuff and does other things Trump demands,” he said.
The Midtown Development Review Committee (DRC) weighed in on the creation of new public spaces at two high-profile rehab projects at its July meeting.
According to a recap posted by Midtown Alliance, one of those spaces is the vast plaza outside the AT&T building at 675 West Peachtree St. The 49-story tower, located behind the Fox Theatre, was recently purchased by New York-based Ichan Enterprises and will be revamped inside and out as AT&T vacates the building and moves employees to other local offices by 2021. The AT&T building has also been rumored as possible space for Amazon’s second headquarters, HQ2, should the retail behemoth choose Atlanta.
The revamp project is being led by CBRE with landscape design by HGOR and interior design by IDEA|SPAN. The first phase focuses on interior updates to the lobby and reimagining the expansive, multi-level plaza that fronts on West Peachtree. The DRC was generally supportive of proposed plaza enhancements and encouraged the applicant to add more landscape elements and natural materials to soften the hard edges of the vent enclosures for the MARTA tunnel, which spans the length of the plaza below grade.
The DRC stressed the need for retail anchors in the plaza, whether temporary kiosks or more permanent structures similar to those in Bryant Park in Manhattan, to attract people to the space during the day and evening, such as after events at the Fox.
Over on Peachtree Street, Parkside Partners recently acquired three buildings at 17th Street and is working with ASD|SKY on an adaptive reuse concept. As part of repositioning 1389, 1401 and 1409 Peachtree Street, they plan to give the buildings a more contemporary facelift and provide active public space across the front, intended to function as an outdoor living room.
The DRC had concerns with the circulation pattern vehicles and thought the trellis feature (which can be seen in the rendering above) needed additional refinement to serve as an enhancement to the project rather than a distracting element. The committee encouraged the applicant to explore additional options for using the architecture of the buildings to engage the plaza and adjacent pedestrian environment. The DRC also recommended review and comment on the project by NPU-E.