00:00Субтитры создавал DimaTorzok
00:30In 2024, the U.S. imported $606bn worth of goods from the EU and exported around $370bn worth.
00:48To reverse the deficit, the U.S. will now apply a 15% tariff to approximately 70% of the goods it receives from the EU.
00:56The auto industry is one of very few sectors viewing this positively, since it will pay 15% instead of the 27.5% imposed at the beginning of Trump's term.
01:07By contrast, steel and aluminium will continue to be levied at 50%.
01:11The parties agree that tariffs will not apply to some strategic sectors for both blocs.
01:16The new tariff represents a substantial increase compared to the average 4.8% on goods applied before Donald Trump came into power this year.
01:27Let's hear what Europeans think about this deal.
01:31It's not the greatest of news.
01:34Maybe people who invest in these companies, for the government in general.
01:40But for me personally, I'm not too concerned.
01:43I don't think we should attack back.
01:45We also have to be a reliable partner.
01:47And that's not in the idea of free trade that the European Union is all about.
01:52Of course, we should try to look outside the EU, outside the Euro-Atlantic front, let's say, maybe Asia.
02:00It's very important to open up to new markets.
02:03So personally, I think that we should ratify Mercosur, the agreement with Mercosur, as soon as possible.
02:10But the U.S. market cannot be replaced in the short or in the medium term.
02:13Euro-News reporter Amandine S. has been covering this topic.
02:18Why does the European Commission consider 15% a good deal when, for example, the U.K. obtained a 10% rate?
02:27Well, the European Commission claims 15% is a good deal because the U.K. 10% tariff is not an all-inclusive rate,
02:34which means it doesn't incorporate the existing U.S. import tariffs applied to the U.K.
02:39And another point is that the U.K. created preferential duty-free quotas for U.S. beef and U.S. ethanol,
02:46while the EU didn't make such concessions.
02:49What will be the impact on European Union's companies?
02:52Is it likely that some of them will move their factories to the U.S.?
02:56So Bernard Arnault, the CEO of LVMH, has already declared that Louis Vuitton will open a new manufacturing site in the U.S.
03:04AstraZeneca also pledged to open a new plant in Virginia.
03:07Now the economists we talked to were not convinced European companies will move their factories to the U.S. on a large scale.
03:15First, we don't know for how long these tariffs will be in place.
03:18Donald Trump is known for being quite unpredictable.
03:21And second, companies producing in the U.S. now have to pay more to import some of the inputs they need for their production.
03:29So it's another impediment.
03:30During the negotiations, the U.S. president also asked for commitments from the EU on energy and arms purchases and more investment.
03:40How big are those commitments and can the European Commission fulfill those promises?
03:47So the European Commission promised that European companies will invest at least $600 billion in the U.S. by 2029.
03:56Now it's not really clear how it will happen because the European Commission cannot tell European companies where to invest.
04:03Then the European Commission pledged to purchase $750 billion worth of U.S. LNG, oil and nuclear energy products.
04:14Now again, it's not really clear because it's not Brussels that would buy this energy.
04:19And Donald Trump claims the EU will purchase American weapons, but Brussels is not competent for arms procurement.
04:27So again, big question mark.
04:29The EU and the U.S. trade around 1.5 trillion euros per year.
04:34And the two economies combined represent a market of 800 million people and nearly 44% of global GDP.
04:41Despite being two economic giants, the EU has a more dependent political position due to U.S. military protection within NATO.
04:50The reaction from several European leaders was quite lukewarm.
04:53For example, French Prime Minister François Bayrou stated that it's a dark day when an alliance of free peoples resigned itself to submission.
05:02His Dutch counterpart, Dix Rolf, said that no tariffs would have been better.
05:07Our guest is Nicolas Poitier, research fellow at Bruegel, a think tank based in Brussels.
05:14After the deal, the European Commission continued negotiating with the United States in order to obtain more tariffs exemptions on certain products and quotas for others.
05:26Is this the right move or it might be necessary to use rebelling countermeasures?
05:33So far, the Europeans have shied away from this.
05:37They announced countermeasures with the intention also kind of to bring the United States to the negotiation table.
05:43I think if we would see countermeasures, they would really depend on basically to which extent this agreement will unravel.
05:50We could see something that's very limited and that's also really targeted on specific products where the pain is very big for the U.S.
05:56But relatively small for the U.S. If we see something like a big unravelling of the agreement, that will not suffice.
06:03And then we might see measures that actually also are very detrimental for the European Union itself.
06:06So the French government advocates the use of the anti-coercive instrument, which would prevent American companies from assessing European public procurement.
06:17What would be the implications of that?
06:19Even though the European Union has a trade surplus when it comes to goods, it has a deficit when it comes to services.
06:25All the digital services that we use, Facebook, Google, they are American services.
06:28And there was this idea of targeting them specifically and the anti-coercive instrument would allow that.
06:33And here really the question is, how can you build a digital single market that would allow European companies to scale to the same extent that Google and Apple did in the past
06:40and then compete with these companies in the global stage rather than us just kind of importing these quick-scaled services from the United States?
06:48The European Commission President Ursula von der Leyen said that a paralysed world trade organisation should be replaced with another institution.
06:58Would that make any difference in the current protectionist trend?
07:02I'm not so sure it would make much of a difference.
07:05The reality is that most trade is still based on WTO principles, including trade with the United States.
07:11The problem with the WTO is that it has not been able to reform itself.
07:14And there are many issues that are open, and some of these issues is why the U.S. is not happy with it.
07:19But there's probably a need to create new ways of making progress on these issues, for instance, incorporating more with other countries than, for instance, in East Asia.
07:28The European Commission has a mandate to negotiate trade deals on behalf of the entire bloc.
07:34But this needs to be approved by the EU member states, which could be a difficult process.
07:40On the other hand, the President Ursula von der Leyen emphasized that the U.S. signed 76 trade agreements and intends to have new ones.
07:50This strategy is enough to offset this blow by the U.S. remains to be seen.
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