A MARTÍNEZ, HOST:
As U.S. tariffs go into force today on European aluminum and steel, the European Union has just approved 25% retaliatory tariffs on a wide range of American products, including almonds, orange juice, poultry and yachts. The EU also says it is preparing and poised to announce tariffs on a second list of U.S. products next week if the Trump administration does not negotiate. For more, we go to NPR's Eleanor Beardsley in Paris. So, Eleanor, tell us more about what the EU has decided.
ELEANOR BEARDSLEY, BYLINE: Well, all 27 EU countries - except for Hungary - voted in favor of imposing these tariffs on U.S. products. Though the volume of the U.S. imports affected by the EU tariffs is around 22 billion euros, a little bit less than the volume of the European aluminum and steel that's going to be affected by the U.S. tariffs that's around 26 billion euros. No one in the EU wanted this. Here is President Emmanuel Macron speaking.
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PRESIDENT EMMANUEL MACRON: (Speaking French).
BEARDSLEY: He says France and Europe never wanted this chaos or the raising of tariffs. We think it's a bad idea and a bad response to the US' commercial deficit. But Macron said the EU will respond if it has to, to protect its industries. Now, the EU does have a huge market in its rich 450 million consumers. Of course, all of this is happening against the backdrop of these stock market gyrations and panic in Europe over that and the prospect of this looming trade war and perhaps even a worldwide recession.
MARTÍNEZ: Now, President Trump has been talking about how many countries are lining up to negotiate. Will there be any room to negotiate with the EU?
BEARDSLEY: Well, the EU has extended the deadline for the second wave of tariffs for that, and it's certainly hoping to negotiate. In fact, France, Ireland and Italy secured the removal of bourbon from the list of targeted American products after President Trump threatened that its inclusion would trigger a 200% tariff on European alcohol, which is a huge export. For France, in particular, the U.S. is its biggest market for wines and champagnes, and wine growers are extremely worried about a looming trade war.
MARTÍNEZ: Everyone might need a gulp of bourbon if this thing lasts long.
BEARDSLEY: Yeah.
MARTÍNEZ: So how does Europe fit into the big picture of countries responding to U.S. tariffs with tariffs of their own?
BEARDSLEY: Well, the EU is offering to negotiate. It's even offering zero tariffs if the U.S. reciprocates. But of course, after much deliberation, it has set out a list and a schedule for tariffs. But, you know, let's notice that it has a timeline for increasing tariffs that goes into effect as far away as December, so that's more than half a year away. It's clearly a carrot and stick go-slow approach, which contrasts with some of the more decisive and immediate moves by China and Canada, for example. You know, many analysts say the EU is trying to offer President Trump multiple opportunities to climb down or to strike a deal at some point, all while allowing the pressure of those other major American trading partners to take effect, which could perhaps make the job easier for Europe.
You know, A, Europe is also dealing with the possibility of the U.S. abandoning its support for Ukraine, pulling back in NATO, maybe taking out some American troops in certain NATO countries, which means Europe needs to spend more on defense. It already knows that, but that's kind of hard to do if your economy is tanking because of a trade war. So EU leaders are really feeling the strain. They've got difficult choices ahead.
MARTÍNEZ: That is NPR's Eleanor Beardsley in Paris. Thank you.
BEARDSLEY: Thank you, A. Transcript provided by NPR, Copyright NPR.
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