
EU: No one will benefit from tariffs but we had to react
Clip: 3/12/2025 | 7m 4sVideo has Closed Captions
'None of us will benefit’ from tariffs but 'we had to react,' EU ambassador says
The European Union and Canada announced retaliatory tariffs on the U.S., escalating President Trump's Trade war. The EU said it will raise tariffs on American beef, poultry, bourbon, peanut butter and jeans. Amna Nawaz discussed the developments with Jovita Neliupšienė, the European Union’s ambassador to the United States.
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EU: No one will benefit from tariffs but we had to react
Clip: 3/12/2025 | 7m 4sVideo has Closed Captions
The European Union and Canada announced retaliatory tariffs on the U.S., escalating President Trump's Trade war. The EU said it will raise tariffs on American beef, poultry, bourbon, peanut butter and jeans. Amna Nawaz discussed the developments with Jovita Neliupšienė, the European Union’s ambassador to the United States.
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Learn Moreabout PBS online sponsorshipAMNA NAWAZ: For more on the U.S. trade war with Europe, we turn now to Jovita Neliupsiene, the European Union's ambassador to the United States.
Madam Ambassador, welcome back to the "News Hour."
Thanks for joining us.
JOVITA NELIUPSIENE, European Union Ambassador to the United States: Well, thank you for having me.
AMNA NAWAZ: So, as we reported, these tariffs largely target products made in Republican states, products from Kansas and Nebraska, Alabama, Georgia, Louisiana.
Is it your hope here that Republican lawmakers will speak up and apply pressure to President Trump to roll back the tariffs, or do you hope that President Trump starts to lose support from his base in these states?
JOVITA NELIUPSIENE: Well, first of all, let's start from the beginning.
We actually deeply regret that the tariffs are introduced for the E.U.
products on steel and aluminum.
We never saw the tariffs as really the measure to foster trade, or -- and we see it actually as a harm for the transatlantic trade relations.
But we have to react, and our reaction will be prompt, and we will reinstitute the tariffs we already had and discussed back in 2018 and 2020.
AMNA NAWAZ: And is it your hope here that Republican lawmakers will see that and want to save their states and start to apply pressure?
Have you been in touch with any of them?
JOVITA NELIUPSIENE: Well, we really had a lot of conversations with senators and congressmen here in D.C. trying to send one single message that tariffs are really not for the best of the transatlantic relations, so we hope that everyone can send a message, the same message.
AMNA NAWAZ: We did see how quickly the terms -- even between the U.S. and Ontario, for example, there was an escalation there, then it was a quick de-escalation.
You saw Ontario slap a surcharge on electricity exports; 24 hours later after a call between the premier there and the U.S. commerce secretary, Ontario rolled back that surcharge, and now the two are meeting in Washington tomorrow.
What would it take for the E.U.
to roll back your tariffs?
JOVITA NELIUPSIENE: We stand ready for talks and for the negotiations.
We repeatedly expressed our interest in talking.
And if you -- you probably noticed that we not only published our intended reciprocal measures.
We as well informed public that they will be they come into effect at the 1st of April, so there is enough time for the conversations.
AMNA NAWAZ: And is it your hope that something happens before April 1 that means you don't have to put the tariffs into place?
JOVITA NELIUPSIENE: Well, we always have a hope for their for the really constructive, constructive talks, because none of us will benefit from the tariffs, because, one, it's always -- it raise the cost for the business.
It may inflict inflation in the U.S.
It weakens in general supply chains, which are the supply chains of transatlantic partners and in general supply chains of allies.
So we don't see how it could be beneficial for both sides of Atlantic.
AMNA NAWAZ: Madam Ambassador, as you know, when the E.U.
trade commissioner was here in Washington to meet with the commerce secretary, Howard Lutnick, last month, he was trying to head off these tariffs.
He came out of that meeting and he said -- quote -- "The E.U.
is not the problem."
Is Commerce Secretary Lutnick someone you can work with on this?
And if not who in the White House can you work with.
JOVITA NELIUPSIENE: Well, of course, commerce -- Secretary of Commerce Lutnick is really our prime contact, as well as USTR Greer.
We are ready to talk whoever is willing to talk and make an action that those tariffs would be -- revert.
AMNA NAWAZ: You say you're ready to talk.
Is it fair to say those conversations are already under way?
JOVITA NELIUPSIENE: Well, we always say here have to have them.
And we already -- as you mentioned, we already had a very in-depth conversation with Secretary Lutnick, and we are ready to continue them.
AMNA NAWAZ: Let me ask you about the U.S. tariffs on steel, because the E.U.
does stand to lose millions of tons in steel exports under those tariffs.
As you know, the U.S. is the second biggest export market for E.U.
steel.
We know European markets were already deeply impacted by the energy crisis that was spurred by Russia's war in Ukraine.
What has been and what could be the impact of those tariffs not just on the E.U.
steel industry, but on European economies?
JOVITA NELIUPSIENE: As the E.U., we are not the major trading partner in steel and aluminum for U.S.
So we don't constitute a problem since 2018 that our exports of steel and aluminum actually decreased.
I really do believe that the impact for economies is always there, because we not only kind of -- it not only impacts the certain sector which get tariffs on, but as well there are the services around that.
It contributes to the weakening of the trade links and the trust of the supply chains.
AMNA NAWAZ: Madam ambassador, beyond commodities, the E.U.
bought an estimated $61 billion of military equipment from the U.S. between 2022 and 2024.
And, as you know, after the U.S. cut off arms and intelligence support to Ukraine, there were a number of European leaders who were reportedly very worried that the U.S. could do the same to them.
Will the E.U.
continue to buy military equipment from the U.S.?
Do you see that changing?
JOVITA NELIUPSIENE: Well, so far as we see from the reports, we have no evidence that the U.S. would be cutting some kind of the sales or productions for the European countries.
And we very much rely on the supplies from U.S., because a lot of NATO capabilities are actually built on U.S. platforms.
AMNA NAWAZ: But is there a concern about the reliance on America?
I mean, is the U.S. still considered a reliable partner to you on this front?
JOVITA NELIUPSIENE: We spend almost 60 percent of our defense budgets in acquiring capabilities, ammunition and different defense-related products from U.S.
I really strongly believe it will remain so.
AMNA NAWAZ: That is the European Union's ambassador to the United States, Jovita Neliupsiene, joining us tonight.
Madam Ambassador, thank you so much for your time.
Good to speak with you.
JOVITA NELIUPSIENE: Thank you.
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Learn Moreabout PBS online sponsorshipMajor corporate funding for the PBS News Hour is provided by BDO, BNSF, Consumer Cellular, American Cruise Lines, and Raymond James. Funding for the PBS NewsHour Weekend is provided by...