US President Donald Trump hosts European Commission chief Jean-Claude Juncker Wednesday 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 EU 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 Tuesday that his latest threat had brought Europe to the negotiating table.
But at home, Trump is facing increasing criticism as consumers, farmers and businesses take a hit from the retaliation to the raft of US tariffs on steel, aluminum, and tens of billions of dollars in products from China that he has imposed in recent weeks.
EU Trade Commissioner Cecilia Malmstrom, who is accompanying Juncker, expressed some optimism that a solution could still be found, but also said the EU is drawing up a list of $20 billion in US products to be targeted for retaliation if the trip fails.
"We hope that this won't happen and that we can reach a solution," Malmstrom told the Swedish daily Dagens Nyheter (DN).
She said the "long list" of American goods would include machinery, agricultural and high-tech products, among others.
- 'WE ARE READY': JUNCKER' -
While Juncker is set to make a last effort to talk Trump out of the auto tariffs, which would hit Germany's dominant carmakers hard, he warned on ZDF that if the US moved ahead, "we are in a position to respond appropriately right away."
Brussels has already retaliated against the steel and aluminum tariffs, imposing punitive duties on more than $3 billion of US goods, including blue jeans, bourbon and motorcycles, as well as orange juice, rice and corn.
Canada, Mexico and China -- the main target of Trump's trade offensive -- have also hit back with steep duties on US goods, and have filed complaints against Washington at the World Trade Organization.
While the US claims the retaliation is "illegal," the Trump administration has acknowledged it is doing damage to American farmers, and on announced it will provide up to $12 billion in aid to farmers hurt by trade tariffs.
-GROWING REPUBLICAN BACKLASH -
Tweeting about the trade standoff on Tuesday, Trump repeated his call to remove all tariffs and trade barriers.
"Both the U.S. and the E.U. drop all Tariffs, Barriers and Subsidies!" he wrote. "Hope they do it, we are ready - but they won't!"
Early Wednesday, Trump hit back against his critics in a further series of tweets:
"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? Are we just going to continue and let our farmers and country get ripped off? Lost $817 Billion on Trade last year. No weakness!"
That figure apparently refers to the US trade deficit in goods alone last year, which hit $810 billion last year, while the total deficit including services was $566 billion.
But more voices including in Trump's own Republican Party are coming out against his confrontational stance.
Republican Senator Ben Sasse, a frequent Trump critic, said the president's trade policies recalled a past of perilous economic instability.
"This administration's tariffs and bailouts aren't going to make America great again, they're just going to make it 1929 again," he said in a statement.
Republican House Speaker Paul Ryan sounded a more supportive note, however, saying that while he would prefer the administration use "better tools" to address unfair trade practices, the confrontation could also produce beneficial results.
"This friction that we're having, as long as it results in lowering barriers... that's great."
