Trade policy update: Trump and Juncker reached an agreement to reduce trade tensions - Nomura

Analysts at Nomura noted in a trade policy update that in a surprise development, news reports indicate that European Commission President Juncker and President Trump reached an agreement to reduce trade tensions between the EU and the US.

Key Quotes:

"The reported deal includes the EU agreeing to increase purchases of US liquefied natural gas and soybeans while lowering some industrial-related tariffs. At a minimum, the deal lowers US-EU trade tensions and could indicate that if the Section 232 auto imports investigation moves ahead, President Trump could exempt the EU from any quota or tariff enactment."