Jonathan Savage recaps President Trump's new trade announcement

Episode Transcript

Speaker 1 (00:00):
Another big win for President Trump with the deal he
cut with the EU.

Speaker 2 (00:05):
I think everybody's going to be happy with this. The
Prime Minister of the UK, while he's not involved in this,
will be very happy because you know there's a certain
unity that's been brought there too. You know, we have
a separate deal with them. But I think everybody's going
to He's going to be very happy.

Speaker 1 (00:22):
To know, no doubt about that. This was a major
win for the President to knock this one down, get
it done, and keep moving forward. China is up next.
Join us now to talk about the action over the
weekend at the golf course in Scotland. Jonathan Savage, our
Fox correspondent over there in the UK. Good morning, Jonathan, welcome.

Speaker 3 (00:37):
In, Hello, good morning.

Speaker 1 (00:39):
So is he right? Prime mister there going to be
happy about this one.

Speaker 3 (00:43):
I think that he will be happy about the cergainty
and I think one thing that we'll make Prime Minister
Keir Starmer happy is that the UK appears to have
got a bit of a better deal than the European
Union did with the ten percent taris rather than fifteen
percent taris. There are still issues, I think on both
deals to be ironed out. But the reaction from European capitals,

(01:05):
the sort of disgruntlement in this deal from various European leaders,
I think tells you all you need to know.

Speaker 1 (01:11):
Well, it kind of looks like under this deal that
the EU rather is you know, going to open up
their US goods at zero percent tariffs.

Speaker 3 (01:18):
Right for certain goods. Indeed, in fact, there's going to
be a zero four zero tariff exchange on aircraft components, chemicals,
certain generic drugs, semiconductor equipment, natural resources and so forth.
And they're going to add even more to that zero
for zero tariff list. One product which they're very interested
in getting done in the European Union is on a

(01:41):
hard liquor, on alcoholic spirits. That's something that they want
to sort out because that's a big market, a big
industry for many European countries.

Speaker 1 (01:48):
Yeah, the EU commissioner there, she said, this was a
really good deal and under this deal, it looks like
the EU countries are going to be opening up all
the goods you know, as you mentioned to that zero terroriffts,
but also investing six hundred billion dollars more in the.

Speaker 3 (02:01):
US, Yes, six hundred million, a billion dollar investment including
in military equipment and another seven hundred and fifty billion
dollars in making purchases from the United States, including on energy,
that in part to try to offset what President Trump
has always said is a trade deficit the United States
has with the European Union. The even versul of Underlion

(02:26):
talked about rebalancing the trading relationship, having previously argued that
it's not out of balance. So, you know, versual of
Underlon speaking President Trump's language there in order to seal
the deal.

Speaker 1 (02:39):
Yeah, what's going on with Germany? They're pretty happy about
this as well, right, didn't the Chancellor say that, you know,
they welcome this and this avoids needless escalation.

Speaker 3 (02:48):
Yeah, Chancellor Merz saying that the agreement has averted a
trade conflict that would have hit German. Germany hard. It's
a very export orientated economy, so the last thing they
wanted was a trade war, particularly because Germany has such
a big car industry and the previous tariffs on the
car industry. We're twenty seven and a half percent, they're
going down to fifteen percent, so almost half. So I

(03:10):
think Germany probably happier than a lot of European countries.
The French Prime Minister today saying it's a somber day
when an alliance of free people's resigns itself to submission.

Speaker 1 (03:20):
Well, this is such a great deal and big win
for the United States, no doubt about that, and I
think both you know, EU as well as the United
States will be happy with this. But you know, now
they've just got to get it. I guess approved final
decision there coming as they present this to the Member
States the Commission. There does so no real hurdles in
the way of that going through, correct do you.

Speaker 3 (03:41):
Believe I think that's fair enough that each country has
to approve it. However, I think, excuse me, I think
what they really want to avoid is a trade war,
as I've said, but also a lot of countries are
saying it's positive that there is certainty and predictability and
that will bring those things not just to the European
American economies, but to the global economy too.

Speaker 1 (04:02):
All right, very good, Jonathan, Thank you so much. I
appreciate you.