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The European Union appears to have won a big trade-war ceasefire with the U.S. for a small price — at least in the short term.

In return for a pledge by U.S. President Donald Trump to suspend the threat of an extra tariff on European cars, the EU reheated proposals to bolster transatlantic economic ties and threw in a vow to buy more American soybeans.

A gauge of European companies in the automobiles and parts sector rose as much as 2.5% today (July 26), as the threat of punitive levies on exports to the U.S. abated.

The main question mark is the feasibility for the EU of the remaining part of the package: a goal to import more liquefied-natural gas from the U.S. This has strategic consequences for the bloc in general and for Germany in particular as Europe seeks to reduce reliance on Russian natural gas.

“We do not believe this will materialize in any significant way,” said Johana Typoltova, European gas analyst for Bloomberg New Energy Finance in London. “There is no need to build more LNG terminals in Europe. Europe’s LNG import facilities are underused as it is, especially in Northwest Europe.”

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