The US has agreed to work towards lowering trade barriers with the European Union, following a meeting between Donald Trump and European Commission chief, Jean-Claude Juncker.
The two have agreed to launch a ‘new phase’ in relations and work towards zero tariffs, the US president said.
It was also agreed that there would be increased trade in services and agriculture, as the two leaders work to defuse what had threatened to become a trade war between the US and EU.
Tension had been fuelled byt tariffs set by Trump on European steel and aluminium exports as well as threats to expand the tariffs to cars.
Speaking from the White House, trump declared a “new phase in the relationship” between the two trading blocs, calling it a “very big day for free and fair trade.”
“We are starting the negotiation right now but we know very much where it is going,” he said.
The pair have agreed to hold off imposing any further tariffs while negotiations take place – a move Juncker called a “major concession” – and to work towards reform of the World Trade Organisation.
Juncker said that striking a deal on zero tariffs on industrial goods was “his main intention.”