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Donald Trump set for tense trade talks with EU's Jean-Claude Juncker

While Juncker is set to make a last effort to talk Trump out of the auto tariffs, which would hurt Germany's dominant carmakers, he warned that if the US moved ahead, "we are in a position to respond appropriately right away."

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US President Donald Trump and European Commission President Jean-Claude Juncker (L) leave after making a statement in the Rose Garden of the White House in Washington. Pic/AFP

US President Donald Trump and European Commission President Jean-Claude Juncker (L) leave after making a statement in the Rose Garden of the White House in Washington. Pic/AFP

US President Donald Trump hosts European Commission chief Jean-Claude Juncker yesterday for what is set to be a tense face-to-face, with efforts to resolve a festering trade dispute between the two key economies seemingly deadlocked. Speaking ahead of the White House talks, Juncker admitted he was "not very optimistic," while Trump kicked off the day with a combative series of tweets vowing "no weakness" in the multiple fights he has launched with America's trade partners. "I know Mr Trump pretty well," Juncker told German public broadcaster ZDF. "I have met him frequently and know how to deal with him."

"We are here to explain ourselves and explore ways to avoid a trade war," he said, stressing that the European Union is "not in the dock -- we don't need to defend ourselves." Juncker also renewed a promise of immediate retaliatory measures should Trump make good on a threat to slap new tariffs on EU car imports. Trump crowed yesterday that his latest threat had brought Europe to the negotiating table and called on both sides to "drop all Tariffs, Barriers and Subsidies!" - even though he said he doubted that the EU would agree. Today, he doubled down. "Every time I see a weak politician asking to stop Trade talks or the use of Tariffs to counter unfair Tariffs, I wonder, what can they be thinking?" Trump tweeted. "Are we just going to continue and let our farmers and country get ripped off? Lost USD 817 Billion on Trade last year. No weakness!"

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