EU Strikes Back at Trump’s Tariff Threat

How is the EU responding to Trump’s 30% tariff threat? Gemma White, Columnist, offers her perspective.

Transcript

00:00Economist Laurie Laird there earlier on speaking to us in London.

00:03Gemma, it's the dog that just cannot be put down, it seems.

00:07They're back once again, tariffs.

00:09This week we're talking about it from the same point of view.

00:13It feels like that's been going on for a while.

00:14The EU is now included in there as well.

00:16They're going to prepare some retaliation tariffs, it seems.

00:20If I never hear the word tariff again, it will be too soon.

00:24I'm just thinking here, look at the EU showing their teeth

00:27when it comes to the economics.

00:29Where's this aggression when it comes to organising ceasefires?

00:33But obviously this is monetary.

00:35So yeah, this was the surprise announcement, which did take the EU by surprise.

00:39It came in a letter from Trump that he's going to apply 30% tariffs against the EU from August 1st.

00:48So he's given Trump longer than he's given the EU to settle into their new reality.

00:54Now, the EU is America's biggest business partner.

00:58Between them, they represent 30% of global trade and it's worth 1.68 trillion euros,

01:05which is $1.96 trillion last year.

01:09So we're talking huge numbers here.

01:11But the EU has come out swinging.

01:14They're not going to settle for this.

01:16They've said it's going to be almost impossible to continue trading with America if this is implemented.

01:21And the foreign minister of Denmark has said,

01:25if you want peace, you have to prepare for war.

01:27And I think that's where we are.

01:29So we have fighting words here.

01:31We'll see you then.

01:32Okay.

01:41And we'll be back.