U.S. President Donald Trump announced a deal on Friday to sell more American beef to Europe, a modest win for an administration that remains mired in a trade war with China, but he said tariffs on European auto exports remain a possibility.

The European Commission has stressed that any beef deal will not increase overall beef imports and that all the beef coming in would be hormone-free, in line with EU food safety rules. The deal needs European Parliament approval.

"The agreement that we sign today will lower trade barriers in Europe and expand access for American farmers and ranchers," Trump said at a gathering of European Union officials and cowboy-hatted American ranchers in the White House Roosevelt Room for the announcement.