In a hastily called Rose Garden appearance with Trump, European Commission President Jean-Claude Juncker said the USA and the EU had 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 and Juncker said the US-EU talks would seek to eliminate tariffs, trade barriers and subsidies for non-automotive industrial goods, and cut barriers to transatlantic trade in services, chemicals, pharmaceuticals and medical products.
Through the deal, the Trump administration seeks to reduce trade barriers to lower the $152 billion USA deficit in merchandise trade with the EU, while European counterparts want an end to repeated threats of new tariffs and other measures to restrict access to the US market.
He said Europe has agreed to increase purchases of United States liquefied natural gas and lower trade barriers to American soybeans, american farmers and the energy sector.
"We know that the impact has been substantial enough that it has made the difference between whether there is a profit margin in some cases", Rotz said.
Both sides will work to decrease industrial tariffs and adjust regulations to allow USA medical devices to be traded more easily in European markets.
Juncker's visit comes amid an escalating trade war between the US and the E.U.in the wake of Trump's decision to slap tariffs on imports of aluminum and steel last month.
They also agreed to increase trade in services and agriculture, including greater USA soy bean exports to the EU.
"Soybeans is a big deal".
Juncker said it was a "good, constructive meeting".
Juncker said the two sides will not impose any new tariffs as the talks are ongoing. China alone imported $12.3 billion in soybeans a year ago, according to the U.S. Department of Agriculture.
The tone between Trump and Juncker was friendly, a marked turnabout from the harsh rhetoric the European Union and US have exchanged in recent weeks.
The truce may prove to be short-lived if the two sides can't resolve their differences over trade in vehicles and auto parts.
American stock markets jumped in their last half-hour of trading in response to reports of a US-EU agreement.
The relationship between the U.S. and European Union has recently taken a nosedive following the United States decision to impose tariffs on aluminium and steel from the European Union and other allies such as Canada.
The Trump administration has imposed tariffs on $34 billion worth of goods from China.
Danielson says without a long term solution, farmers are not the only ones who will be impacted by the trade war.
Trump's latest tweets came a day after his administration's first acknowledgement that the aggressive trade actions are causing domestic pain, with the announcement of $12 billion in aid for farmers who have been the primary targets of Chinese retaliation. It also will provide funds to outside organizations to build overseas markets for US food and ag exports.
The nonprofit group, which is backed by the American Farm Bureau Federation and major commodity groups like the National Pork Producers Council, is investing $2.5 million in the four-month campaign aimed at showcasing how the tariffs are causing pain among US farmers and manufacturers because of Trump's trade policies. The trouble is, China past year imported $12.3 billion in USA soybeans, the European Union just $1.6 billion.
Critics said Trump's aggressive approach makes it tough for other countries to offer concessions, lest they be seen by their own people as caving in to bullying.
Marcel Fratzscher, head of the Berlin-based DIW economic institute, said the meeting had produced "a deescalation but not yet the all-clear" and warned of US possibly "manipulating" the World Trade Organization for its own goals and "further weakening multilateralism".