European Commission chief Jean-Claude Juncker said today the United States and EU were "not enemies" as he began talks with US President Donald Trump aimed at defusing trade tensions between the two key economies.
Trump said he expected "something very positive to take place" during the White House talks -- after sending a series of tweets blasting Europe for unfair treatment of US exports.
With the United States threatening to impose punishing new tariffs on EU auto exports, Juncker said: "We are close partners, allies -- not enemies." "We have to work together. We are representing half of world trade," the European leader said.
"I think we have to talk to one another and not at one another," Juncker said as he sat next to Trump in the Oval Office, thanking the US leader for "taking the initiative to invite us to the White House."
Trump repeated his call for "reciprocal" trade.
"Over the years the United States has been losing hundreds of billions of dollars with the European Union and we just wanted it to be a level playing field for farmers, manufacturers, for everybody," Trump said.
Before coming to Washington, Juncker had warned he was "not very optimistic" about the talks -- and vowed immediate retaliatory measures should Trump make good on a threat to slap new tariffs on autos and auto parts.
EU Trade Commissioner Cecilia Malmstrom, who is accompanying Juncker, said the EU is drawing up a list of USD 20 billion in US products to be targeted for retaliation if the trip fails.
Trump crowed yesterday that his latest threat had brought Europe to the negotiating table and called on both sides to "drop all Tariffs, Barriers and Subsidies!"
Trump's confrontational trade actions, especially against US allies like Canada, Mexico and the EU, is drawing increasing criticism, and the administration acknowledged yesterday that American farmers are being hurt by the retaliatory measures.
The Agriculture Department announced it would release up to USD 12 billion in aid for farmers to buy crops or food that they cannot sell, and help them find new markets.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)