President Trump will announce a deal Friday to sell more American beef to EU countries, economic adviser Larry Kudlow said — a win for the administration as the trade war with China intensifies.
“America has great beef. We’re selling more,” Kudlow said.
The European Commission had stressed that any beef deal would not increase overall beef imports from all producers, and that all the beef coming in would be hormone-free, in line with EU food safety rules.
Two people familiar with the matter had told Reuters earlier on Friday that Trump planned to sign an agreement to open up European markets to more US beef.
EU sources and diplomats in June said a deal had been reached to allow the US a guaranteed share of a 45,000-ton EU quota.
The announcement coincided with Trump ratcheting up Washington’s trade dispute with China.
On Thursday, the president said he would impose a 10 percent tariff on $300 billion of Chinese imports on Sept. 1, and threatened to raise tariffs further if Chinese President Xi Jinping failed to move faster on striking a trade deal.
The dispute between the world’s two top economies could hurt world growth, including in Europe, as it enters its second year.
US and European officials have sought to lay the groundwork for talks on their own trade agreement but have been stymied over an impasse on agriculture.
The agreement on beef could, however, ease tensions between the two sides, which are each other’s largest trading partners.
Team Trump has been pursuing a host of new trade deals with Europe, China and others as part of the Republican president’s “America First” agenda as he seeks a second term in office.
European stocks on Friday were battered by Trump’s latest salvo against China, and Wall Street also took a hit, with the Dow falling roughly 250 points as of 1:10 p.m.
Lingering issues remain in other areas of US-EU trade, including import duties on industrial goods that Europe wants removed, and the threat of tariffs on European cars imported to the States.
EU governments cleared the agreement on July 15, but it still needs European Parliament approval.
With Reuters
