Kim Mackrael

The tariffs that they've talked about would basically come into effect in two sets. The first set would come April 1st and the next would come in mid-April.

The tariffs that they've talked about would basically come into effect in two sets. The first set would come April 1st and the next would come in mid-April.

Worth flagging that for all of this, the EU has really emphasized the idea that if there was any way of coming to a deal with the US to avert the steel and aluminum tariffs that the US imposed, they could not impose these retaliatory tariffs or they could take them away later on.

Worth flagging that for all of this, the EU has really emphasized the idea that if there was any way of coming to a deal with the US to avert the steel and aluminum tariffs that the US imposed, they could not impose these retaliatory tariffs or they could take them away later on.

The EU has tried in producing this list to come up with products that will have a maximum influence and potentially maximum pain for the United States while minimizing the impact and the pain for Europeans. And so a lot of them focus on, in some cases, Republican states, in some cases, products that they think that Europeans can find elsewhere from other countries.

The EU has tried in producing this list to come up with products that will have a maximum influence and potentially maximum pain for the United States while minimizing the impact and the pain for Europeans. And so a lot of them focus on, in some cases, Republican states, in some cases, products that they think that Europeans can find elsewhere from other countries.

You mentioned whiskey, motorcycles, motorboats. We've got cranberries, garden umbrellas, tablecloths, handkerchiefs, soybeans, which is on the list of potential tariffs. They're also a major agricultural export to the EU from Louisiana, which also happens to be the home state of House Speaker Mike Johnson. You can see a little bit of an attempt by the EU to make some deliberate choices there.

You mentioned whiskey, motorcycles, motorboats. We've got cranberries, garden umbrellas, tablecloths, handkerchiefs, soybeans, which is on the list of potential tariffs. They're also a major agricultural export to the EU from Louisiana, which also happens to be the home state of House Speaker Mike Johnson. You can see a little bit of an attempt by the EU to make some deliberate choices there.

Thank you, Kim. Thank you.

Thank you, Kim. Thank you.

No, I think that's right. The US is an extremely important export market for Europe. And in Europe's case, it's 20% across the board tariffs, as well as the auto tariffs of 25%, the steel and aluminum tariffs of 25%. The threat of future tariffs, that's a huge threat to the outlook for Europe.

No, I think that's right. The US is an extremely important export market for Europe. And in Europe's case, it's 20% across the board tariffs, as well as the auto tariffs of 25%, the steel and aluminum tariffs of 25%. The threat of future tariffs, that's a huge threat to the outlook for Europe.

Yeah. And pharmaceutical tariffs for Europe would hit Ireland very hard. Denmark is a major pharmaceutical hub for Europe. There's the potential for even more hits to the economy that could be coming.

Yeah. And pharmaceutical tariffs for Europe would hit Ireland very hard. Denmark is a major pharmaceutical hub for Europe. There's the potential for even more hits to the economy that could be coming.

The EU is really trying to pursue a two-pronged path in responding to Trump's tariffs. Their goal is to have negotiations and come up with some sort of deal that they hope would be beneficial for both the US and the EU. At the same time, the feeling is that you're not going to make much progress on negotiations if you don't come at it from a strong position.

The EU is really trying to pursue a two-pronged path in responding to Trump's tariffs. Their goal is to have negotiations and come up with some sort of deal that they hope would be beneficial for both the US and the EU. At the same time, the feeling is that you're not going to make much progress on negotiations if you don't come at it from a strong position.

And the view among EU officials is you need to have a stick waiting. So there'll be a vote today to approve a set of tariffs on specific US products. And if that vote is approved, which is quite likely, then they would go into effect next week.

And the view among EU officials is you need to have a stick waiting. So there'll be a vote today to approve a set of tariffs on specific US products. And if that vote is approved, which is quite likely, then they would go into effect next week.

Coming up with an agreement on which American products to go after is not the easiest thing for the European Union, which has 27 member countries, all sorts of different interests that they have to get everybody basically on board for something that in some cases might cause some pain. So they work to narrow down a list of products to go after. all sorts of iconic American products.

Coming up with an agreement on which American products to go after is not the easiest thing for the European Union, which has 27 member countries, all sorts of different interests that they have to get everybody basically on board for something that in some cases might cause some pain. So they work to narrow down a list of products to go after. all sorts of iconic American products.

In some cases, we've got peanut butter, chewing gum is actually on the list. So chewing gum will face a European tariff coming soon, likely. We've got boats, motorcycles, Harley Davidson would be affected by that one. Also interesting in this list is what they decided to spare. So we've got whiskey was on an original potential hit list for European tariffs that was taken off.

In some cases, we've got peanut butter, chewing gum is actually on the list. So chewing gum will face a European tariff coming soon, likely. We've got boats, motorcycles, Harley Davidson would be affected by that one. Also interesting in this list is what they decided to spare. So we've got whiskey was on an original potential hit list for European tariffs that was taken off.

During the process, same for American wines. And those are interesting because after the EU initially started talking about its retaliation about a month ago, President Trump responded very quickly with a threat of a potential 200% tariff on European alcohols, threatening specifically champagne, but saying that that could apply to other alcoholic beverages as well.

During the process, same for American wines. And those are interesting because after the EU initially started talking about its retaliation about a month ago, President Trump responded very quickly with a threat of a potential 200% tariff on European alcohols, threatening specifically champagne, but saying that that could apply to other alcoholic beverages as well.

That would be absolutely devastating for the wine and spirits industry in Europe. You can see some strategizing going on there where you still are hitting quite a lot of American products, but there's some care being taken to not overly antagonize.

That would be absolutely devastating for the wine and spirits industry in Europe. You can see some strategizing going on there where you still are hitting quite a lot of American products, but there's some care being taken to not overly antagonize.

Great. Thanks so much, Luke.

Great. Thanks so much, Luke.

For the EU, this is an inconvenient change in U.S. policy, to say the least. It comes, as I've recently promised, to advance negotiations to speed things up. To have another increase on US tariffs is something that EU officials have warned could actually cause some problems for those negotiations.

For the EU, this is an inconvenient change in U.S. policy, to say the least. It comes, as I've recently promised, to advance negotiations to speed things up. To have another increase on US tariffs is something that EU officials have warned could actually cause some problems for those negotiations.

They've suggested as well that it could actually trigger retaliation by putting tariffs on US goods in response. EU countries are, compared with some big steel exporters like India, Japan, South Korea, they are relatively smaller players. The measures nonetheless come at a very sensitive time for the EU as it tries to increase its economic growth.

They've suggested as well that it could actually trigger retaliation by putting tariffs on US goods in response. EU countries are, compared with some big steel exporters like India, Japan, South Korea, they are relatively smaller players. The measures nonetheless come at a very sensitive time for the EU as it tries to increase its economic growth.

It's working on building up its defense manufacturing base. And obviously, that's something that relies very heavily on metals production.

It's working on building up its defense manufacturing base. And obviously, that's something that relies very heavily on metals production.

So the trade relationship is huge. The EU is the U.S. 's biggest trading partner and vice versa. And if you think about it in terms of the importance for the U.S. economy, trading goods and services with the EU actually accounted last year for almost 5% of the U.S. 's gross domestic products.

So the trade relationship is huge. The EU is the U.S. 's biggest trading partner and vice versa. And if you think about it in terms of the importance for the U.S. economy, trading goods and services with the EU actually accounted last year for almost 5% of the U.S. 's gross domestic products.

Yeah, that is right. So this is an issue that President Trump raises quite a lot and clearly a big concern for him. But President Trump tends to focus specifically on the goods trade deficit that the US has with the EU. What that doesn't fully account for is that the US actually has a services surplus.

Yeah, that is right. So this is an issue that President Trump raises quite a lot and clearly a big concern for him. But President Trump tends to focus specifically on the goods trade deficit that the US has with the EU. What that doesn't fully account for is that the US actually has a services surplus.

So, you know, if you combine both the goods trade and the services trade, there is still for the US a deficit overall in trade with the EU, but it's a lot smaller than what typically is raised by US trade officials.

So, you know, if you combine both the goods trade and the services trade, there is still for the US a deficit overall in trade with the EU, but it's a lot smaller than what typically is raised by US trade officials.

The Trump administration is coming at these talks looking for some pretty significant concessions from trading partners generally and from the EU. And some of what they're asking for are changes to policy that the EU wouldn't tend to consider to be trade issues. One example I think that people have probably heard about is European countries' value-added tax. And that's a consumption tax.

The Trump administration is coming at these talks looking for some pretty significant concessions from trading partners generally and from the EU. And some of what they're asking for are changes to policy that the EU wouldn't tend to consider to be trade issues. One example I think that people have probably heard about is European countries' value-added tax. And that's a consumption tax.

It's not that different from a sales tax. It's used throughout Europe and a lot of other countries, not used in the US. Generally, it's seen as a non-discriminatory tax, but it's been an issue that President Trump has raised repeatedly as a major concern. And it's something that European countries' governments rely on the value-added tax for a lot of their revenue.

It's not that different from a sales tax. It's used throughout Europe and a lot of other countries, not used in the US. Generally, it's seen as a non-discriminatory tax, but it's been an issue that President Trump has raised repeatedly as a major concern. And it's something that European countries' governments rely on the value-added tax for a lot of their revenue.

So that's one of the sticking points. And I think some of the others... that we've seen come up are the EU's food safety rules. President Trump sees those as, in some cases, a barrier to trade, to keeping U.S. products out, and the EU's digital rules.

So that's one of the sticking points. And I think some of the others... that we've seen come up are the EU's food safety rules. President Trump sees those as, in some cases, a barrier to trade, to keeping U.S. products out, and the EU's digital rules.

So in some cases, we're talking about policies that have been developed at the EU level that the EU is not really interested in just giving these up in these talks.

So in some cases, we're talking about policies that have been developed at the EU level that the EU is not really interested in just giving these up in these talks.

We haven't seen at this stage any signs of a real breakthrough right now. But we've got a milestone coming up. There's a possibility of the U.S. trade representative, Jameson Greer, will probably be at the OECD meetings happening in Paris next week. That might be an opportunity for him to have a meeting with the EU's trade commissioner.

We haven't seen at this stage any signs of a real breakthrough right now. But we've got a milestone coming up. There's a possibility of the U.S. trade representative, Jameson Greer, will probably be at the OECD meetings happening in Paris next week. That might be an opportunity for him to have a meeting with the EU's trade commissioner.

And then, you know, we've got just now a few more weeks until July 9th. So... There's a lot of recognition from the EU side anyway that it is a crunch time to try to get a deal if one is to be gotten.

And then, you know, we've got just now a few more weeks until July 9th. So... There's a lot of recognition from the EU side anyway that it is a crunch time to try to get a deal if one is to be gotten.

Yeah, so they really are not looking at doing this in the near term. This is something they want to have on hand in case they get to that point. They'll probably be making an assessment closer to the end of the 90-day pause on the higher reciprocal tariffs.

Yeah, so they really are not looking at doing this in the near term. This is something they want to have on hand in case they get to that point. They'll probably be making an assessment closer to the end of the 90-day pause on the higher reciprocal tariffs.

If they get to the point at the end of those three months where it seems clear there's no deal that the EU considers to be fair forthcoming, then that's a point when they would consider the U.S. tariffs to be a somewhat more permanent thing, or are we still actually making progress on negotiations?

If they get to the point at the end of those three months where it seems clear there's no deal that the EU considers to be fair forthcoming, then that's a point when they would consider the U.S. tariffs to be a somewhat more permanent thing, or are we still actually making progress on negotiations?

The talks are ongoing. What we're hearing from them are that... The EU has come up with a few different offers or suggestions of things that it could do. They've said, here are some products we could probably buy more of. And the examples they've given are liquefied natural gas and soybeans. They've also said one thing we could do is we could all lower our industrial tariffs. to zero.

The talks are ongoing. What we're hearing from them are that... The EU has come up with a few different offers or suggestions of things that it could do. They've said, here are some products we could probably buy more of. And the examples they've given are liquefied natural gas and soybeans. They've also said one thing we could do is we could all lower our industrial tariffs. to zero.

Neither of those are things that it appears the Trump administration has really picked up in a way that it moves the negotiations forward substantially.

Neither of those are things that it appears the Trump administration has really picked up in a way that it moves the negotiations forward substantially.

It's a bit early to say what this will mean for the EU, but the early feedback that I've heard so far is that, first of all, you have to consider that these are very differently sized economies.

It's a bit early to say what this will mean for the EU, but the early feedback that I've heard so far is that, first of all, you have to consider that these are very differently sized economies.

So the fact that the UK was able to come up with a deal with the US, much smaller economy compared with the EU's 27 member states, also a unified economy and is always balancing multiple interests in a way that can be a little more complicated than a country like the UK.

So the fact that the UK was able to come up with a deal with the US, much smaller economy compared with the EU's 27 member states, also a unified economy and is always balancing multiple interests in a way that can be a little more complicated than a country like the UK.

The other thing is some European officials, they look at this and they say, well, maybe there is something we could learn from what worked for the UK, but not necessarily that this is a template for a European deal.

The other thing is some European officials, they look at this and they say, well, maybe there is something we could learn from what worked for the UK, but not necessarily that this is a template for a European deal.

To be honest, I feel empowered by that. Actually, because I believe in community. That's how we built our brand.

To be honest, I feel empowered by that. Actually, because I believe in community. That's how we built our brand.

We have felt impact from our sales on Target.com. But what I will say is that we're seeing better awareness from like a community level, more grassroots.

We have felt impact from our sales on Target.com. But what I will say is that we're seeing better awareness from like a community level, more grassroots.

I'm not wallowing. You know what I mean? I'm not wallowing. Because I know that there's another wave of support that's coming. So if I can just hold out, I think it'll work.

I'm not wallowing. You know what I mean? I'm not wallowing. Because I know that there's another wave of support that's coming. So if I can just hold out, I think it'll work.