Next week EU negotiators come to the US to discus trade. Trump set the tone for the meeting in a Tweet blasting the EU.

Meanwhile, the EU Readies New Trade Retaliation List Before Trump Visit.

Trade Commissioner Cecilia Malmstrom will travel to Washington on July 25 with European Commission President Jean-Claude Juncker, with the latter due to hold talks focused on trade with U.S. President Donald Trump.

The United States imposed tariffs on EU steel and aluminum on June 1 and Trump is threatening to extend them to EU cars and car parts.

Trump's top economic adviser, Larry Kudlow, said on Wednesday he expected Juncker to come with a significant trade offer. EU officials have downplayed suggestions Juncker will arrive with a novel plan to restore good relations.

Some reports have said that a multilateral deal to remove car tariffs was one idea put forward. Malmstrom on Thursday questioned the viability of such a plan and also said a bilateral deal with the United States to scrap car tariffs could only be done if part of a broader trade agreement.


"The aim of President Juncker's visit is to try to establish a good relations, try to see how we can de-escalate the situation, avoiding it going further and see if there is a forum where we can discuss these issues," Malmstrom said.

"We don't go there to negotiate anything," she added.

Negotiation Madness

Rather than discuss the issues, the EU negotiators want to meet Trump to see if they can agree to a later forum to discuss the issues.

One of the fundamental flaws of the EU is the trade commissioner cannot really negotiate a new trade deal with the US. Every nation in the EU has a say. That is why it took Canada a decade to work out a deal.

The UK desperately needs to escape such madness.

In regards to the $5 billion fine, Trump is correct. It's outrageous. So the stage is set for a very contentious meeting.

Mike "Mish" Shedlock

Any Edge is Unfair! EU Witch Hunt Group Fines Google Record €2.4 Billion

The European Commission, a group that proves the UK is better off outside the EU, fined Google $2.7BN for EU Antitrust Violations Over Shopping Searches.

Trade Dispute: Trump Told Macron the EU is "Worse" Than China

In a strong hint at what's going to happen next, Trump complained to French president Macron the EU is worse than China.

Trump's $54 Billion Tax Hike on Autos: EU Threatens $300 Billion Retaliation

The EU is poised to retaliate against Trump. The Financial Times editorial board endorses the idea.

Trump Threatens China With a Big Fine: So What? All Mouth, No Action?

Trump is bashing China once again. This time, Trump proposes a big "fine" over an alleged theft of intellectual property

Bond Market Disagrees With Fed Economic Assessment: So Do I

Fed Minutes Show Concern Over Trump's Tariffs in Otherwise Bullish Assessment.

Auto Truce is Over: Trump Again Threatens the EU, Japan with a 25% Tariff

Trump again threatens the EU with 25% tariffs on cars just as he is working on a deal with China. What's the obsession?

Trump Tweets "Tariffs are the Greatest!" Seeks "One-Time" Aid to Farmers

Trump offers farmers $12B in "one-time" aid to stem allegedly "illegal" trade retaliation by China and the EU.

Futures Tank as Trump Proposes $100 Billion More China Tariffs

China retaliated on $50 Billion worth of tariffs, so Tump slammed China with another $100 billion.

EU Buffoonery: Brexit Divorce Bill Upped to €100 Billion

The laugh of the day is a move by the EU to up Brexit divorce settlement to €100 billion from €60 billion.