Trump is right to check Germany on trade

Adjust Comment Print

Sen. Ben Sasse, R-Neb., came out swinging against the newly proposed aid package, describing it as a pair of "gold crutches" to support the farmers hobbled by President Donald Trump 's own trade policy. "If we team up, we can make our planet a better, more secure, and prosperous place".

Trump's progress with European Union leaders was greeted by farm-state lawmakers who have been concerned about the impact of retaliatory tariffs on soybeans and other crops. Lost $817 Billion on Trade a year ago.

The leaders pledged to expand European imports of US liquefied natural gas and soybeans and both vowed to lower industrial tariffs, excluding autos.

"We will also work to reduce barriers and increase trade in services, chemicals, pharmaceuticals, medical products, as well as soybeans; soybeans is a big deal". In Alabama, our auto manufacturers, small business owners, and everyday consumers will face heavy losses if Trump follows through on his proposed tariffs.

With a GDP that is less than one-third of the size of China's, it is clear that Germany not only has a larger trade surplus in goods and services but is benefitting far more from global trade in proportion to the size of its economy than China: Germany's surplus represents 2.1 percent of its GDP, whereas China's surplus represents 0.7 percent of its GDP.

Trump then moved to the second portion of the agreement, "strengthening of [America's] strategic cooperation with respect to energy". Farmers in Iowa alone could lose as much as $624 million on soybean shipments to China, Donnelle Eller, an agriculture reporter with the Des Moines Register, told CBSN last month.

The White House released few details about the agreement as both sides now iron out the paper work to a successful trading partnership.

In announcing the farmer assistance program, USDA secretary Sonny Perdue sent a signal that the Trump administration is willing to help US industries hurt in the trade war.

"Expectations are so low that I believe it is possible", he said.

Trump has already put taxes on imported steel and aluminum, saying they pose a threat to USA national security, an argument that enrages staunch U.S. allies such as the European Union and Canada.

That being said, he understands this is a strategy to fix trade problems with China.

Juncker also renewed a promise of immediate retaliatory measures should Trump make good on a threat to slap new tariffs on European Union auto imports. He echoed President Trump and efforts to strengthen energy cooperation and importation of LNG.

In Pennsylvania, where 59,000 farms have a $137.5 billion economic impact, the tariffs have taken a toll.

"We will hold off future tariffs and reassess existing tariffs on steel and aluminum", Juncker said.

Checking out a speedboat, a fighter jet and a giant industrial magnet on the White House driveway, President Donald Trump showcased an array of "Made in America" products as his administration pushes back aggressively against critics who say his tariffs threaten the USA economy.

But with Trump expecting Juncker to come to Washington with a "significant" offer - and Brussels saying that won't happen - the outcome of this meeting is too tricky to call.