President Donald Trump threatened to hit car exports from the European Union with a retaliatory tax, escalating a brewing global fight with U.S. trading partners triggered by newly announced 25 percent U.S. tariffs on imported steel and aluminum.

In a post on Twitter, Trump cited a "big imbalance" between the two countries, said if the 28-nation bloc insisted on imposing punitive taxes on U.S. goods, America would strike back on European car exports. It was an apparent response to European officials threatening policy changes of their own in the wake of Trump's sudden pronouncement on metal imports.

"If the E.U. wants to further increase their already massive tariffs and barriers on U.S. companies doing business there, we will simply apply a tax on their cars which freely pour into the U.S.," the president said on Twitter.

That could spell trouble for car manufacturers like Volkswagen and BMW, two of the most popular European brands sold in the U.S. The German luxury car maker also manufactures many of its cars in America, shipping billions of dollars worth abroad.

In 2016, the EU shipped more than 6 million cars abroad, and the U.S. — its largest market by far — absorbed more than 1 million of those, according to the European Automobile Manufacturers Association.

Each year, the U.S. imports more from Europe than the continent absorbs in American goods, to the tune of a trade deficit totaling more than $151 billion in 2017, according to U.S. Census data.

Trump's hasty decision to impose tariffs on steel imports has stoked talk of a brewing trade war, roiling both the political establishment and the global economic order. The move also prompted E.U. trade chiefs to weigh hitting a broad array of U.S. imports with a 25 percent tax, Reuters reported this week. </s> Media playback is unsupported on your device Media caption Trump on new tariffs: 'We haven't been treated fairly'

US President Donald Trump has stepped up his war of words over trade tariffs, threatening to "apply a tax" on imports of cars from the European Union.

Mr Trump said other countries had taken advantage of the US for years because of its "very stupid" trade deals.

The trade wrangle began on Thursday when Mr Trump vowed to impose hefty tariffs on steel and aluminium imports.

That brought a stiff response from trading partners and criticism from the IMF and WTO.

EU trade chiefs have reportedly been considering slapping 25% tariffs on around $3.5bn (£2.5bn) of imports from the US, following Mr Trump's proposal of a 25% tariff on imported steel and 10% on aluminium.

They would target iconic US exports including Levi's jeans, Harley-Davidson motorbikes and Bourbon whisky, European Commission head Jean-Claude Juncker said.

What has Mr Trump said now?

In a tweet on Saturday, the president said: "If the EU wants to further increase their already massive tariffs and barriers on US companies doing business there, we will simply apply a Tax on their Cars which freely pour into the US.

"They make it impossible for our cars (and more) to sell there. Big trade imbalance!"

A second tweet decried the "$800 Billion Dollar Yearly Trade Deficit because of our 'very stupid' trade deals and policies".

Mr Trump added: "Our jobs and wealth are being given to other countries that have taken advantage of us for years. They laugh at what fools our leaders have been. No more!"

How many EU-made cars go to the US?

The US is the largest export market for EU cars - making up 25% of the €192bn (£171bn; $237bn) worth of motor vehicles the bloc exported in 2016 (China was second with 16%).

Germany is responsible for just over half of the EU's car exports, so new US tariffs would hurt the car industry there. But German carmakers also build hundreds of thousands of cars in the US every year - providing many US jobs that German officials say Mr Trump overlooks.

Do fellow Republicans back Mr Trump's trade threats?

A number have questioned the wisdom of the tariff proposal and have been urging the president to reconsider.

Image copyright Getty Images Image caption A VW dealership in California. Mr Trump says there is a "big trade imbalance"

Senator Orrin Hatch said: "I'm very surprised, he's had very bad advice from somebody down there. The people who are going to have to pay these tariffs are going to be the American citizens."

Senator Ben Sasse said: "Kooky 18th Century protectionism will jack up prices on American families - and will prompt retaliation."

And industry bodies like the US Motor and Equipment Manufacturers Association have expressed deep concern, saying the benefits from the recent cuts in corporation tax "could all be for naught".

But Mr Trump's Commerce Secretary Wilbur Ross stood firmly behind the plans, saying the president was "fed up with the continued over-capacity, he's fed up with the subsidisation of exports to us".

Why does he want to impose tariffs?

It chimes with his "America First" policy and the narrative that the US is getting a raw deal in its trade relations with other countries.

Mr Trump tweeted on Friday that the US was "losing billions of dollars" and would find a trade war "easy to win".

The president is using a clause in international trade rules which allows for tariffs for national security reasons.

But his move has not come totally out of the blue.

The commerce department recommended tariffs in February after conducting a review under rarely invoked national security regulations contained in a 1962 trade law.

Mr Trump had already announced tariffs on solar panels and washing machines in January.

What has the international response been?

The IMF said others could follow the US leader's precedent by claiming tough trade restrictions were needed to defend national security.

Canada said tariffs would cause disruption on both sides of the border. Prime Minister Justin Trudeau slammed the tariffs as "absolutely unacceptable".

He told reporters in Ontario he was "confident we're going to continue to be able to defend Canadian industry".

It is one of several countries, including Brazil, Mexico and Japan, that have said they will consider retaliatory steps if the president presses ahead with his plan next week.

World Trade Organization Director General Roberto Azevedo said: "A trade war is in no-one's interests."

But Mr Trump tweeted, "Trade wars are good."

Are trade wars good?

Analysis by Theo Leggett, business correspondent

If trade wars really were good and easy to win, the World Trade Organization probably wouldn't exist.

Most countries believe that negotiations are best carried out and disputes settled through a rules-based system. Introducing trade barriers on a tit-for-tat basis has the potential to harm companies on both sides.

But that's unlikely to bother Mr Trump. His campaign rhetoric drew heavily on the perceived threat to traditional US industries from foreign interlopers acting unfairly. He's simply continuing in that vein.

And it's unlikely to register much with the steelworkers of Pennsylvania and Indiana. Concerned about their jobs and the future, many will welcome Mr Trump's comments. </s> Theresa May has told Donald Trump of her "deep concern" over his plan to raise tariffs on steel and aluminium imports.

In a tweet, the President has said the US' tariff system on steel was "not fair or smart".

Read more: Last Week in the City: Trump threatens trade war

"When a country taxes our products coming in at, say, 50 per cent, and we tax the same product coming into our country at zero, not fair or smart," he said.

"We will soon be starting reciprocal taxes so that we will charge the same thing as they charge us."

May said in a phone call to Trump earlier today that countries should work together to tackle overcapacity, and raised her concerns about his policy.

Trump has also attacked the EU, saying the US will tax car imports from the bloc if it increases tariffs on US businesses in the car industry.

"They make it impossible for our cars (and more) to sell there," Trump said in a tweet overnight. "Big trade imbalance!" </s> WASHINGTON – President Donald Trump on Wednesday morning continued to rail against General Motors' announced closures and layoffs, using them to again threaten tariffs on imported autos and auto parts.

In tweets Wednesday, Trump mentioned the so-called chicken tax – a 25 percent tariff placed on imported light-duty trucks in the U.S. initially created in response to other countries' taxes on imported chicken from the U.S. – as "The reason that the small truck business in the U.S. is such a go-to favorite."

"If we did that with cars coming in, many more cars would be built here," Trump tweeted.

Trump has been threatening for much of his presidency to tax imported autos and auto parts, saying it would save and create manufacturing jobs in the U.S. His administration is in the midst of a review of whether such a move could be made under national security grounds.

But many carmakers are dead-set against such a move, saying it would increase the costs of production and set in motion a trade war that could hurt their businesses. In September, other Republicans on the Senate Finance Committee criticized the proposal as well, citing estimates they could result in a $73-billion tax increase on consumers and put hundreds of thousands of jobs at risk.

More: Trump's plan to tax auto imports blasted by Senate Republicans

More: Trump threatens punishment for GM after plant closures, layoff news

More: Democrats say GM gets tax cuts while workers get shafted

Trump argued again Wednesday, however, that tariffs may be the incentive needed for GM to keep U.S. plants open in the wake of an announcement Monday that it would shed some 14,000 jobs nationwide and close assembly plants in Michigan, Maryland and Ohio.

If tariffs were put in place, he said, "G.M. would not be closing (those) plants. Get smart Congress. Also, the countries that send us cars have taken advantage of the U.S. for decades."

He ended with a threat, noting that regardless of congressional action, "The President has great power on this issue — Because of the G.M. event, it is being studied now!"

As president, Trump could order tariffs to be increased under his present authority. But that authority — which was granted by Congress — could be challenged by votes in the U.S. House and Senate. Meanwhile, there have already been reports that Trump could look to add tariffs on autos as early as next week, following this weekend's G20 talks in Buenos Aires, Argentina.

Trump has sharply criticized GM following Monday's announcement, first saying he was "not happy" and had spoken directly to CEO Mary Barra about it and then, on Tuesday, threatening to cut subsidies for the company — which appeared especially aimed at one it and other automakers rely on to sell electric vehicles.

It was far from clear that Trump could do much to stop that benefit as well without having Congress change the law, and U.S. Sen. Debbie Stabenow, D-Michigan, said such a move would be "the exact opposite of what we should be doing right now. This is a time when we should be supporting the new jobs being created for our talented auto workers, not doubling down on policies that will hurt them.”

Tuesday afternoon, GM put out a statement saying, "We appreciate the actions this administration has taken on behalf of industry to improve the overall competitiveness of U.S. manufacturing" and said it remains "committed to maintaining a strong manufacturing presence in the U.S."

It did not directly address the president's remarks, however. Barra said Monday the moves were being made to reposition the company at a time of downturn in auto sales overall.

Meanwhile, it's also worth noting that when it comes to popular smaller trucks, not all are made solely in the U.S. now. While Ford's F-150 is the most popular vehicle and GM actually has larger market share for trucks than anyone, the most popular midsize truck is the Toyota Tacoma, which is assembled in Texas and Mexico.

Competition is heating up in the segment and production will increase. GM and Ford build their midsize trucks in the United States, and Fiat Chrysler plans a Jeep truck to be built in Toledo. </s> Sign up for one of our email newsletters.

WASHINGTON — Checking out a speedboat, a fighter jet and a giant industrial magnet parked on the White House driveway, President Trump showcased an array of “Made in America” products Monday as his administration pushes back aggressively against critics who say his punishing tariffs on imported goods threaten to harm the U.S. economy.

Trump’s event with a smorgasbord of American goods came at the start of a week in which trade discussions are expected to dominate, including talks with European officials and a trip to Illinois in which the president is planning to visit a community helped along by his steel tariffs.

Trump has vowed to force international trading partners to bend to his will as he seeks to renegotiate a series of trade deals he has long argued hurt American workers. But as he deepens the U.S. involvement in trade fights, it raises questions on whether American consumers will feel the pain of retaliatory tariffs — and whether the president will incur a political price for his nationalistic trade policies in the 2018 midterm elections.

“Our leaders in Washington did nothing, they did nothing. They let our factories leave, they let our people lose their jobs,” Trump said at the White House. “That’s not free trade, that’s fool’s trade, that’s stupid trade and we don’t do that kind of trade anymore.”

Trump noted that he would be meeting Wednesday with European officials, including European Commission President Jean-Claude Juncker. The U.S. and European allies have been at odds over the president’s tariffs on steel imports and are meeting as the dispute threatens to spread to the lucrative automobile business. “Maybe we can work something out,” he said.

On Thursday, the president will visit Granite City, Ill., the home of a U.S. Steel Corp. mill that has reopened after he imposed tariffs on steel imports.

On the South Lawn, the president walked among a number of products manufactured across the nation, including a Lockheed Martin F 35 aircraft from Maryland, a Ford F-150 pickup truck from Michigan, a Newmar recreational vehicle from Indiana and a Ranger speedboat from Arkansas.

Trump has already put taxes on imported steel and aluminum, saying they pose a threat to U.S. national security, an argument that enrages staunch U.S. allies such as the European Union and Canada.

He’s threatening to use the national security justification again to slap tariffs on imported cars, trucks and auto parts, potentially targeting imports that last year totaled $335 billion.

And he’s already imposed tariffs on $34 billion in Chinese imports in a separate dispute over Beijing’s high-tech industrial policies. He has threatened to ratchet that up past $500 billion.

“He likes tariffs,” said William Reinsch, a former U.S. trade official under President Bill Clinton now at the Center for Strategic and International Studies. “His preferred remedy is always tariffs, whether it makes any sense or not.”

“It’s a policy of victimization: ‘Other people have been taking advantage of the United States for years … Now they have to pay,’” Reinsch said, echoing the president’s argument.

Trade analysts say the United States has not pursued such aggressive trade policies in decades.

“I can’t think of another time when you had as many battles and particularly as many battles with no resolution in sight,” said Edward Alden, senior fellow at the Council on Foreign Relations.

In 1971, President Richard Nixon imposed a broad 10 percent import tax for four months to pressure Japan and European countries to drive up the value of their currencies. The idea: provide relief to American exporters, who were being put at a price disadvantage by a strong dollar.

In 1930, the U.S. raised tariffs dramatically to protect American industry, encouraging other countries to do the same in a global trade war that made the Great Depression worse.

Economists said the tariffs that Trump has imposed so far — and the resulting retaliation — are unlikely to do much economic damage. But things could escalate rapidly.

“If you look at what’s teed up, particularly with China and with the auto tariffs, pretty soon you are talking about some pretty large numbers. Those will do some real damage,” Alden said.

Oxford Economics has calculated that a full-blown U.S.-China trade war — in which each country taxes all the other’s imports — would shave 1 percent off the U.S. economy and wipe out 700,000 jobs in the United States by 2020.

The Peterson Institute for International Economics has estimated that a trade war over autos could cost up to 1.2 million American jobs.

Critics said Trump’s aggressive approach makes it tough for other countries to offer concessions, lest they be seen by their own people as caving in to bullying.

“The Trump administration has not left an easy path to walk away from the fights they’ve created,” Alden said. </s> President Donald Trump and European leaders pulled back from the brink of a trade war over autos Wednesday and agreed to open talks to tear down trade barriers between the United States and the European Union.

But the agreement was vague, the coming negotiations with Europe are sure to be contentious and the United States remains embroiled in major trade disputes with China and other trading partners.

In a hastily called Rose Garden appearance with Trump, European Commission President Jean-Claude Juncker said the U.S. and the EU have agreed to hold off on new tariffs, suggesting that the United States will suspend plans to start taxing European auto imports — a move that would have marked a major escalation in trade tensions between the allies.

Trump also said the EU had agreed to buy "a lot of soybeans" and increase its imports of liquefied natural gas from the U.S. And the two agreed to resolve an ongoing dispute over U.S. tariffs on steel and aluminum.

"It's encouraging that they're talking about freer trade rather than trade barriers and an escalating tariff war," said Rufus Yerxa, president of the National Foreign Trade Council and a former U.S. trade official. But he said reaching a detailed trade agreement with the EU would likely prove difficult.

At least the tone was friendlier than it has been. During a recent European trip, Trump referred to the EU as a "foe, what they do to us in trade." Juncker, after Trump imposed tariffs on steel and aluminum imports, said in March that "this is basically a stupid process, the fact that we have to do this. But we have to do it. We can also do stupid."

On Wednesday, Trump and Juncker said they have agreed to work toward "zero tariffs" and "zero subsidies" on non-automotive goods.

Trump told reporters it was a "very big day for free and fair trade."

The president campaigned on a vow to get tough on trading partners he accuses of taking advantage of bad trade deals to run up huge trade surpluses with the United States.

He has slapped taxes on imported steel and aluminum, saying they pose a threat to U.S. national security. The U.S. and EU are now working to resolve their differences over steel and aluminum — but the tariffs are still in place. And they would continue to hit U.S. trading partners like Canada, Mexico and Japan even if the U.S. and the EU cut a deal.

Whatever progress was achieved Wednesday could provide some relief for U.S. automakers. The escalating trade war and tariffs on steel and aluminum had put pressure on auto company earnings. General Motors had slashed its outlook, and shares of Ford Motor Co. and auto parts companies had fallen.

"Our biggest exposure, our biggest unmitigated exposure, is really steel and aluminum when you look at all of the commodities," GM CEO Mary Barra said Wednesday. "And frankly, the biggest driver of that is steel."

Trump has also imposed tariffs on $34 billion of Chinese imports — a figure he has threatened to raise to $500 billion — in a dispute over Beijing's aggressive drive to supplant U.S. technological dominance.

China has counterpunched with tariffs on American products, including soybeans and pork — a shot at Trump supporters in the U.S. heartland.

The EU is stepping in to ease some of U.S. farmers' pain. Juncker said the EU "can import more soybeans from the U.S., and it will be done."

Mary Lovely, a Syracuse University economist who studies trade, said, "The Chinese are not going to be buying our soybeans, so almost by musical chairs our soybeans are going to Europe." The trouble is, China last year imported $12.3 billion in U.S. soybeans, the EU just $1.6 billion.

Trump's progress with EU leaders was greeted by farm-state lawmakers who have been concerned about the impact of retaliatory tariffs on soybeans and other crops.

Sen. Chuck Grassley, R-Iowa, said what farmers in his home state need "and this might be helpful in this direction— is they got to know that this thing isn't going to go on forever."

Sen. Lindsey Graham, R-S.C., tweeted that the agreement "not to impose additional tariffs during negotiations is very smart and the best way to achieve a win-win solution."

He added: "Now is the time for EU and US - both victims to unfair China trade practices - to unite against China."

The White House announcement came as the Trump administration announced a final rule aimed at speeding up approval of applications for small-scale exports of liquefied natural gas. The Trump administration has made LNG exports a priority, arguing that they help the economy and enhance geopolitical stability in countries that purchase U.S. gas.

Juncker said the two sides also agreed to work together to reform the World Trade Organization, which Trump has vehemently criticized as being unfair to the U.S.

The biggest news from the Trump-Juncker meeting is that it appears to have delayed an impending trade war over autos. Trump has threatened to tax imported cars, trucks and auto parts, potentially targeting imports that last year totaled $335 billion.

The European Union had warned that it would retaliate with tariffs on products worth $20 billion if Trump puts duties on cars and auto parts from Europe.

But the auto trade war with Europe is on hold while the U.S. and EU engage in further trade talks. Daniel Ikenson, director of trade studies at the libertarian Cato Institute, warned that the fight over autos could quickly flare up again if Trump grows impatient with Europe.

"Auto tariffs are looming unless the EU buys more U.S. stuff and does other things Trump demands," he said.

Associated Press writers Lisa Mascaro, Christopher Rugaber, Darlene Superville, Matthew Daly and Josh Boak in Washington contributed to this story.

On Twitter, follow Ken Thomas at https://twitter.com/KThomasDC and Paul Wiseman at https://twitter.com/PaulWisemanAP </s> WASHINGTON (AP) — President Donald Trump and European leaders pulled back from the brink of a trade war over autos Wednesday and agreed to open talks to tear down trade barriers between the United States and the European Union.

But the agreement was vague, the coming negotiations with Europe are sure to be contentious and the United States remains embroiled in major trade disputes with China and other trading partners.

In a hastily called Rose Garden appearance with Trump, European Commission President Jean-Claude Juncker said the U.S. and the EU have agreed to hold off on new tariffs, suggesting that the United States will suspend plans to start taxing European auto imports — a move that would have marked a major escalation in trade tensions between the allies.

Trump also said the EU had agreed to buy “a lot of soybeans” and increase its imports of liquefied natural gas from the U.S. And the two agreed to resolve a dispute over U.S. tariffs on steel and aluminum.

“It’s encouraging that they’re talking about freer trade rather than trade barriers and an escalating tariff war,” said Rufus Yerxa, president of the National Foreign Trade Council and a former U.S. trade official. But he said reaching a detailed trade agreement with the EU would likely prove difficult.

President Donald Trump says the US and the EU have agreed to work toward “zero tariffs” and “zero subsidies” on non-automobile goods. EU Commission President Jean-Claude Juncker says he has made a deal with Trump to try to ease trade tensions. (July 25)

The tone was friendlier than it has been. During a recent European trip, Trump referred to the EU as a “foe, what they do to us in trade.” Juncker, after Trump imposed tariffs on steel and aluminum imports, said in March that “this is basically a stupid process, the fact that we have to do this. But we have to do it. We can also do stupid.”

On Wednesday, Trump and Juncker said they have agreed to work toward “zero tariffs” and “zero subsidies” on non-automotive goods.

Trump told reporters it was a “very big day for free and fair trade” and later tweeted a photo of himself and Juncker in an embrace, with Juncker kissing his cheek.

“Obviously the European Union, as represented by @JunckerEU and the United States, as represented by yours truly, love each other!” he wrote.

The president campaigned on a vow to get tough on trading partners he accuses of taking advantage of bad trade deals to run up huge trade surpluses with the U.S.

He has slapped taxes on imported steel and aluminum, saying they pose a threat to U.S. national security. The U.S. and EU are now working to resolve their differences over steel and aluminum — but the tariffs are still in place. And they would continue to hit U.S. trading partners like Canada, Mexico and Japan even if the U.S. and the EU cut a deal.

Whatever progress was achieved Wednesday could provide some relief for U.S. automakers. The escalating trade war and tariffs on steel and aluminum had put pressure on auto company earnings. General Motors had slashed its outlook, and shares of Ford Motor Co. and auto parts companies had fallen.

“Our biggest exposure, our biggest unmitigated exposure, is really steel and aluminum when you look at all of the commodities,” GM CEO Mary Barra said Wednesday.

Trump has also imposed tariffs on $34 billion of Chinese imports — a figure he has threatened to raise to $500 billion — in a dispute over Beijing’s aggressive drive to supplant U.S. technological dominance.

China has counterpunched with tariffs on American products, including soybeans and pork — a shot at Trump supporters in the U.S. heartland.

The EU is stepping in to ease some of U.S. farmers’ pain. Juncker said the EU “can import more soybeans from the U.S., and it will be done.”

Mary Lovely, a Syracuse University economist who studies trade, said, “The Chinese are not going to be buying our soybeans, so almost by musical chairs our soybeans are going to Europe.” The trouble is, China last year imported $12.3 billion in U.S. soybeans, the EU just $1.6 billion.

Trump’s announcement stunned lawmakers who arrived at the White House ready to unload concerns over the administration’s trade policies only to be quickly ushered into Rose Garden for what the chairman of the Senate Agriculture Committee called “quite a startling” development.

“I think everybody sort of changed what they were going to say,” said Sen. Pat Roberts, R-Kan.

Lawmakers said they still needed to see details of the agreement with the EU as well as progress on the other deals. But they said the breakthrough announcement was a step in the right direction.

“We have more confidence in him now than we did before,” said Rep. Mike Conaway, R-Texas, the chairman of the House Agriculture Committee.

The White House announcement came as the Trump administration announced a final rule aimed at speeding up approval of applications for small-scale exports of liquefied natural gas. The Trump administration has made LNG exports a priority, arguing that they help the economy and enhance geopolitical stability in countries that purchase U.S. gas.

Juncker said the two sides also agreed to work together to reform the World Trade Organization, which Trump has vehemently criticized as being unfair to the U.S.

The biggest news from the Trump-Juncker meeting is that it appears to have delayed an impending trade war over autos. Trump had threatened to tax imported cars, trucks and auto parts, potentially targeting imports that last year totaled $335 billion.

The European Union had warned that it would retaliate with tariffs on products worth $20 billion if Trump put duties on cars and auto parts from Europe.

But the auto trade war with Europe is on hold while the U.S. and EU engage in further trade talks. Daniel Ikenson, director of trade studies at the libertarian Cato Institute, warned that the fight could flare up again if Trump grows impatient with Europe.

“Auto tariffs are looming unless the EU buys more U.S. stuff and does other things Trump demands,” he said.

Associated Press writers Lisa Mascaro, Kevin Freking, Christopher Rugaber, Darlene Superville, Matthew Daly and Josh Boak in Washington contributed to this story.

On Twitter, follow Ken Thomas at https://twitter.com/KThomasDC and Paul Wiseman at https://twitter.com/PaulWisemanAP </s> WASHINGTON (AP) — The Latest on President Donald Trump and trade (all times local):

Facing criticism from allies overseas and members of his own party, President Donald Trump is signaling he is not backing down from his plan to place tariffs on imports of aluminum and steel.

Trump tweets Sunday night that the American "steel and aluminum industries are dead. Sorry, it's time for a change!"

Trump is readying to place tariffs of 25 percent and 10 percent on steel and aluminum imports, respectively.

The protectionist move fulfills a campaign promise to protect American manufacturers, but is pitting him against free-market Republicans and American trading partners who are warning it would ignite a trade war.

British Prime Minister Theresa May called Trump on Sunday to register her displeasure with the impending action.

British Prime Minister Theresa May has spoken with President Donald Trump and expressed "deep concern" about his threatened trade war with the European Union.

May's office says she discussed the issue with Trump during a telephone call Sunday.

Trump has threatened to tax European cars if the EU boosts tariffs on American products in response to the president's plan to increase duties on steel and aluminum.

May's office says she "raised our deep concern at the president's forthcoming announcement on steel and aluminum tariffs, noting that multilateral action was the only way to resolve the problem of global overcapacity."

The leaders also discussed Syria and humanitarian concerns in eastern Ghouta. May's office says they agreed "the overwhelming responsibility" for suffering falls on the Syrian government and Russia, its main backer.

An influential Republican senator says President Donald Trump is "making a huge mistake" with his plan to impose steep tariffs on imported steel and aluminum.

South Carolina Sen. Lindsey Graham is joining a growing number of Republicans and business groups in criticizing the president's tariff plans. He says Trump is "letting China off the hook." Graham says "China is winning and we're losing with this tariff regime."

Graham tells CBS' "Face the Nation" that Trump is picking a fight with American allies in Europe in a way that plays into China's hands. He says Trump should "go after China, not the rest of the world."

A senior member of British Prime Minister Theresa May's Cabinet has chastised President Donald Trump for threatening a trade war with the European Union.

Cabinet Office Minister David Lidington's comments Sunday on the BBC came after Trump threatened to tax European cars if the EU boosts tariffs on American products in response to the president's plan to impose tariffs on steel and aluminum.

Lidington says "the United States is not taking an advisable course in threatening a trade war," adding that "trade wars don't do anybody any good."

Lidington also says Britain's experience shows that protectionism doesn't work. He says when the U.K. tried to protect its car industry in the 1960s and '70s "we lost all our export markets" because other countries were more competitive.

A business leader wants President Donald Trump to have "the courage" to step back from his campaign rhetoric on trade.

The Business Roundtable's Josh Bolten, a chief of staff for President George W. Bush, tells "Fox News Sunday" that "every modern president has faced some trade skirmishes during their time but they've all been wise enough not to let it descend into outright trade war."

Bolten praises Trump for following through on campaign promises to cut taxes and federal regulations, but trade is another matter.

He says: "Sometimes a president needs to, you need to stick to your principles but you also need to recognize in cases where stuff you said in the campaign isn't right and ought to be drawn back. The president needs to have the courage to do that."

White House trade adviser Peter Navarro says President Donald Trump's planned steel and aluminum tariffs won't have any exemptions for certain countries.

Speaking on CNN's "State of the Union," Navarro says: "At this point in time there's no country exclusions."

American allies including Canada have protested the planned protectionist move by the president, saying they shouldn't be covered by Trump's planned 25 percent tariffs on steel and 10 percent on aluminum.

The Pentagon recommended "targeted" tariffs, so as not to upset partners. But Navarro says Trump decided on wide-ranging import charges because he seeks to boost American manufacturers.

"As soon as you exempt one country, then you have to exempt another country," Navarro says.

Commerce Secretary Wilbur Ross says "I believe so" when asked whether President Donald Trump will make a formal announcement this week about trade penalties on imported steel and aluminum.

There's been speculation Trump may consider exempting some U.S. allies. But Ross says, "As far as I know he's talking about a fairly broad brush. ... I have not heard him describe particular exemptions just yet."

Ross is dismissing the fallout from potential retaliation by the European Union.

He tells ABC's "This Week" that "sure there may be some sort of retaliation, but the amounts that they're taking about are also pretty trivial." He says the EU has threatened tariffs on $3 billion-plus worth of U.S. goods.

In Ross' words: 'Overall it's not going to be much more than a rounding error."

Few issues could blur the lines of partisanship in Trump-era Washington.

Trade is one of them.

President Donald Trump's announcement that he'll impose stiff tariffs on imported steel and aluminum has labor unions and liberal Democrats in the unusual position of applauding his approach.

Republicans and an array of business groups are warning of dire economic and political consequences if he goes ahead with the trade penalties.

Trade politics often cut along regional, rather than ideological, lines. That's because politicians reflect the interests of the hometown industries and workers.

But rarely does a debate open so wide a rift between a president and his party — leaving him almost exclusively with support from his ideological opposites.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. </s> WASHINGTON (AP) -- President Donald Trump and European leaders pulled back from the brink of a trade war over autos Wednesday and agreed to open talks to tear down trade barriers between the United States and the European Union.

But the agreement was vague, the coming negotiations with Europe are sure to be contentious and the United States remains embroiled in major trade disputes with China and other trading partners.

In a hastily called Rose Garden appearance with Trump, European Commission President Jean-Claude Juncker said the U.S. and the EU have agreed to hold off on new tariffs, suggesting that the United States will suspend plans to start taxing European auto imports — a move that would have marked a major escalation in trade tensions between the allies.

Trump also said the EU had agreed to buy "a lot of soybeans" and increase its imports of liquefied natural gas from the U.S. And the two agreed to resolve a dispute over U.S. tariffs on steel and aluminum.

"It's encouraging that they're talking about freer trade rather than trade barriers and an escalating tariff war," said Rufus Yerxa, president of the National Foreign Trade Council and a former U.S. trade official. But he said reaching a detailed trade agreement with the EU would likely prove difficult.

The tone was friendlier than it has been. During a recent European trip, Trump referred to the EU as a "foe, what they do to us in trade." Juncker, after Trump imposed tariffs on steel and aluminum imports, said in March that "this is basically a stupid process, the fact that we have to do this. But we have to do it. We can also do stupid."

On Wednesday, Trump and Juncker said they have agreed to work toward "zero tariffs" and "zero subsidies" on non-automotive goods.

Trump told reporters it was a "very big day for free and fair trade" and later tweeted a photo of himself and Juncker in an embrace, with Juncker kissing his cheek.

"Obviously the European Union, as represented by @JunckerEU and the United States, as represented by yours truly, love each other!" he wrote.

The president campaigned on a vow to get tough on trading partners he accuses of taking advantage of bad trade deals to run up huge trade surpluses with the U.S.

He has slapped taxes on imported steel and aluminum, saying they pose a threat to U.S. national security. The U.S. and EU are now working to resolve their differences over steel and aluminum — but the tariffs are still in place. And they would continue to hit U.S. trading partners like Canada, Mexico and Japan even if the U.S. and the EU cut a deal.

Whatever progress was achieved Wednesday could provide some relief for U.S. automakers. The escalating trade war and tariffs on steel and aluminum had put pressure on auto company earnings. General Motors had slashed its outlook, and shares of Ford Motor Co. and auto parts companies had fallen.

"Our biggest exposure, our biggest unmitigated exposure, is really steel and aluminum when you look at all of the commodities," GM CEO Mary Barra said Wednesday.

Trump has also imposed tariffs on $34 billion of Chinese imports — a figure he has threatened to raise to $500 billion — in a dispute over Beijing's aggressive drive to supplant U.S. technological dominance.

China has counterpunched with tariffs on American products, including soybeans and pork — a shot at Trump supporters in the U.S. heartland.

The EU is stepping in to ease some of U.S. farmers' pain. Juncker said the EU "can import more soybeans from the U.S., and it will be done."

Mary Lovely, a Syracuse University economist who studies trade, said, "The Chinese are not going to be buying our soybeans, so almost by musical chairs our soybeans are going to Europe." The trouble is, China last year imported $12.3 billion in U.S. soybeans, the EU just $1.6 billion.

Trump's announcement stunned lawmakers who arrived at the White House ready to unload concerns over the administration's trade policies only to be quickly ushered into Rose Garden for what the chairman of the Senate Agriculture Committee called "quite a startling" development.

"I think everybody sort of changed what they were going to say," said Sen. Pat Roberts, R-Kan.

Lawmakers said they still needed to see details of the agreement with the EU as well as progress on the other deals. But they said the breakthrough announcement was a step in the right direction.

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In a message on Twitter, U.S. President Donald Trump says the U.S. will apply a tax on cars made in the European Union if the E.U. "further" increases tariffs.