The spate of negative news stemming from trade wars got a temporary reprieve at the close of Wednesday’s trading session, as U.S. President Donald Trump and European Commission President Jean-Claude Juncker averted a trade war by agreeing on various concessions.
The Dow Jones Industrial Average staged a late rally, closing over 172 points from the previous day. The S&P 500 ended up 0.91% for the day while the NASDAQ closed over 90 points up on the day.
The European Union agreed to lower industrial tariffs as well as import more U.S. soybeans. In addition, Europe will work closely with the U.S. to bring in more U.S. liquid natural gas export.
The rally broke open on reports that Trump and Juncker agreed to trade concessions after meeting on Wednesday for over two hours. Following the negotiations, Trump and Juncker held a joint press conference at the White House Rose Garden.
“Already today the United States and European Union have a one trillion dollar bilateral trade relationship, the largest economic relationship anywhere in the world,” said Trump. “We want to further strengthen this trade relationship to the benefit all American and European citizens.
“This is why we agreed today, first of all, to work together towards zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods. We will also work to reduce barriers to increase trade in services, chemicals, pharmaceuticals, medical products, as well as soybeans.”
Furthermore, Trump concluded the press conference, telling reporters “this was a vey big day for free and fair trade.”
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