Economist: Trump’s deals come with catches

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00:00Let's start off with America's single biggest trading partner, the European Union.

00:05It says it is working to reach a trade deal with the U.S.

00:09But really, how complicated are these discussions?

00:13And as I mentioned earlier, are we just expecting this to go down to the wire?

00:18Yeah, and I was really hoping you didn't ask me about this one because I'm baffled.

00:22I'm baffled that both the U.S. and the Europeans are saying we're very close to a deal

00:27and that talks seem to be kind of proceeding in a calm fashion

00:31because when this tariff war first broke out, there were really unkind words on both sides, right?

00:37Donald Trump said that the European Union was formed simply to screw America.

00:42That's a direct quote I'll have you know.

00:45The EU has already let it be known that they drew up a list of retaliatory tariffs.

00:50So they weren't inclined to sort of genuflect to Donald Trump the way some other countries have.

00:54So I'm very surprised that things seem to be proceeding in an orderly manner.

01:00I think that things will be incredibly complex.

01:03Look, Donald Trump likes to, you know, add complexity to these deals.

01:07You know, different tariffs for different industry groups, carve-outs for various things.

01:12So we may get a deal, but, you know, beware of what Donald Trump calls a deal, right?

01:18We had that U.K.-U.S. deal a couple of months ago.

01:22Some of those details are still being worked out.

01:25We may get some kind of memorandum of understanding.

01:29But keep in mind, when Donald Trump makes a deal, I think it's subject to change, right?