00:00What impact will the trade agreement between the European Union and Washington have on European households and businesses?
00:09Most European products exported to the United States will be taxed at 15% from 1st August.
00:15But residents of Brussels say they aren't so worried about their purchasing power.
00:19I think tariffs are counterproductive. I prefer free trade. And I think it's self-damaging to the Americans to bring in tariffs on anybody and everybody.
00:31I think the EU depends a lot on the US in many ways. We should probably become more independent and develop our own economic strategies more independently from the US.
00:42In the short term, the impact of US tariffs on European consumers should be limited.
00:50European consumers is going to be limited. And why is that? Tariffs or duties are paid by the importer.
00:57In this case, this 15% tariff that the US is imposing on EU products apply to the American importers.
01:11So that means that certain things might become more expensive for the American citizens.
01:19In the long term, Chinese products currently exported to the US could find their way to the European market, which could lead to lower prices in Europe.
01:26The primary effect will be less demand for European products in the US and less demand for Chinese products in the US.
01:31And that means that these products will then try to look for a market in Europe, which generally will lead to lower prices.
01:37European companies exporting to the US are likely to face a drop in demand on the other side of the Atlantic, which could lead to a decline in their revenues and potentially jobs in Europe.
01:46US President Donald Trump hopes that foreign companies will be encouraged to open factories in the United States to avoid paying tariffs.
01:53However, concerns around Trump's predictability and the uncertainty surrounding the duration of these tariff barriers could conversely discourage European companies from investing in the United States.
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