The Dow Jones Industrial Average rocketed 172 points to close the day on July 25 following reports that President Trump struck a deal with the EU to avert a trade war.
According to Dow Jones, the spike came after the EU agreed to terms to import increased amounts of soybeans in addition to agreeing to work towards eliminating tariffs on industrial goods and remove barriers and subsidies.
President Trump Met With the EU on Wednesday to Come to a Compromise on Tariffs
President Trump met with the European Union delegation on Wednesday to work on coming to a compromise to avoid a trade war. European Commission President Jean-Claude Juncker and Cecilia Malmström, the EU’s trade commissioner, are committed to eliminating tariffs on industrial items such as steel and aluminum.
Malmström tweeted about the successful meeting: “Important meeting at the White House today with @JunckerEU and @realDonaldTrump. Turning a page, agreed to facilitate trade between us, looking at zero tariffs on industrial goods, energy and regulatory cooperation. Also intensify work on reform of WTO.”
Trump Criticized the World Trade Organization Just a Few Weeks Ago
The WTO (World Trade Organization) has been a target of President Trump in recent weeks. “WTO’s treated the United States very badly,” Trump said at the White House in early July. “We’re not planning anything now, but if they don’t treat us properly, we will be doing something,” he added.
It would seem, at least for now, that President Trump is seeking to build relationships with trade partners rather than destroy them.