Transcript
Indiana University Narrator (0:00)
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Bloomberg Radio Announcer (0:20)
Bloomberg Audio Studios Podcasts Radio News Trade tensions between
Bloomberg Radio Host (0:26)
the United States and the European Union have resurfaced since President Trump said he would raise the tariffs on EU and trucks to 25%. The European Commission President Ursula von der Leyen says the EU is ready for all scenarios if Washington breaks its trade agreements truck last summer. This all ahead of a meeting of G7 trade ministers happening in Paris this morning. Joining us in our Brussels studio to discuss is the U.S. ambassador to the European Union, Andrew Pozder. Good morning Ambassador. Great to have you back with us. Good morning on Bloomberg Radio. Can you explain the root of this problem? President Trump says he wants to increase these levies because the EU isn't complying with the deal. What's the issue?
Andrew Pozder (1:01)
So back In March of 2025, the President took auto tariffs up to 25%. After a bunch of back and forth communications between President von der Leyen and President Trump, we reached an agreement in Turnberry last year where we would reduce our tariffs to 15% and the EU would reduce their tariffs to zero. We reduced our tariffs on August 1st of last year. That's nine months ago on autos. And to date we haven't seen the EU reduce a single tariff. Not only haven't they reduced tariffs, but when the parliament came forward after many delays and voted to approve the deal, they tried to change the deal. They want to add four or five amendments to the deal which completely change it. They want to renegotiate. So the President said, look, after nine months of you enjoying the benefits of this deal and dragging your feet on getting us the benefits, time's up. We're not going to put up with this. You need to get this thing done. You need to get it done the way we agreed to it, the way President von der Leyen and I agreed to it. And if you can't get it done, then we're going to take tariffs back up and we're going to take the tariff up on autos. Now, it hasn't happened yet, but he's notified Europe that it will happen.
Interviewer (2:18)
The European Union would argue that this is the system by which the legislation has to be passed, that it has to go through the legislative process. Was it necessary to threaten tariffs in order to try to push this through?
Andrew Pozder (2:31)
