00:00First of all, the retaliatory tariffs, they could put the EU and the US on a very difficult ground.
00:07How likely is it, do you think, that this is going to happen?
00:09That's a difficult question because trying to second-guess Donald Trump on trade is really a bit of a mugs game.
00:15Certainly the mood music has changed.
00:17You'll remember last week, it seemed like everybody was playing nicely and getting along.
00:21And it was a little bit surprising because the US administration has been so disdainful of all things Europe.
00:28But last week, we were getting all sorts of indications that a deal was tantalizingly closed.
00:33You got the impression that they were just about to sign something.
00:36That seems to have changed on Saturday after Donald Trump posted on True Social, his social media network, that he was going to impose these 30% tariffs.
00:4730% is a pretty serious number.
00:50In fact, a couple of EU officials have said that will obliterate trade.
00:54There certainly can't be any trade if European goods are slapped with 30% tariffs.
01:00Both sides have said they intend to keep working on a deal.
01:04Whether something will come to pass, so difficult to tell.
01:07My guess would be that there will be some kind of extension, simply because that's the pattern that we have seen up to now.
01:13But Donald Trump doesn't like Europe very much.
01:16I think if there's one country or one region that may not escape things, it might be Europe.
01:22And to add to that, the administration has said anyone who threatens retaliation will be slapped with even higher tariffs.
01:30Europe has made it very clear that they've already drawn up a list of products that are going to slap.
01:35And it really runs the gamut, aircraft parts, car parts, motorcycles, agricultural products, really hitting all sorts, the whole range of American exports to the EU.
01:46So the fact that Europe is standing up to the U.S. may just irk Donald Trump a little bit more.
