00:00What exactly is in this deal? The Trump administration is hailing this as such a major win, but what do we know about it?
00:06Well, essentially, 70% or so of European products that head to the United States will be included under this blanket base rate of a 15% tariff.
00:19That's, according to analysts, worth just shy of $450 billion.
00:25There are some exemptions. There are some carve-ins, some carve-outs, really, looking at what is exempt and what is included in so-called zero-for-zero tariffs.
00:35Well, that includes some critical areas such as aircraft parts, semiconductors, certain chemicals as well.
00:43Some significant parts of industry that are not included in this 15%, the steel sector, of course, huge here in Europe.
00:52Now, that is still subject to a 50% tariff, so certainly seen as a major loss here in Europe and has been one of the reasons why this deal has received a fair amount of criticism here in Brussels.
01:06You also mentioned some of the other factors outside of this tariff rate, more investment.
01:12The EU has pledged to pay roughly $750 billion when it comes to spending more on U.S. energy, $600 billion on more U.S. investment, things like the military sector as well.
01:23That is all part of what Donald Trump says is an effort to rebalance what he describes as an unfair trade relationship.
01:30That is all part of what Donald Trump says is an unfair trade relationship.
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