STEVE INSKEEP, HOST:
President Trump has sent out more tariff letters. He's been copying and pasting similar language in letters to multiple countries, promising higher tariffs beginning August 1.
SARAH MCCAMMON, HOST:
He then posted those letters on social media. And the targets included Mexico, one of the most important U.S. trading partners. The president blamed Mexico for not doing enough to stop the fentanyl trade. President Trump also issued a letter to the European Union, promising a tariff and demanding changes to European trade policies.
INSKEEP: NPR's Eleanor Beardsley is covering the European response from Paris. Hi there, Eleanor.
ELEANOR BEARDSLEY, BYLINE: Good morning, Steve.
INSKEEP: OK. So the president says now a 30% tariff will be imposed on the Europeans, even though they were in the middle of negotiating all this at the time. How have Europeans responded?
BEARDSLEY: Well, they were stunned, even though by now they're used to these Trump shocks. But many know it's a negotiating tactic. But there's a lot at stake, so there was anger. You know, the EU-U.S. trade is around $1 trillion a year, and this could be upended if 30% tariffs would come into effect. The European Union includes 27 countries with more than 450 million consumers. And as you said, they had been negotiating furiously. They thought an acceptable deal was being made for both sides, and they clearly expected to keep tariffs at 10%.
So yesterday, they held an emergency meeting in Brussels, and European Commission President Ursula von der Leyen spoke afterwards. Now, the Commission negotiates for the EU members. She did not hit back. She said the EU would actually suspend retaliatory tariffs on U.S. goods that were scheduled to take effect today - this in the hopes of reaching a trade deal by the end of the month. And she spoke about stability and a constructive transatlantic partnership. Here she is.
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URSULA VON DER LEYEN: We have always been very clear that we prefer a negotiated solution. This remains the case.
BEARDSLEY: Though she did say, we will protect Europe's interests and the EU is ready to respond with countermeasures.
INSKEEP: This is very interesting - not immediately responding with pushback, perhaps presuming that the United States will back off on the tariffs, as Trump has repeatedly done all year long. But are all Europeans on board with this approach?
BEARDSLEY: Well, not completely. And there's a feeling that Trump is trying to exploit possible divisions. French President Emmanuel Macron had the toughest words. He warned of being ready for a trade war with Washington and said Europeans must remain united. You know, Europe is under a lot of pressure, Steve. They've already agreed to hugely increase defense spending in NATO because of pressure from President Trump, but also because of the war on the continent. And last night, Macron spoke ahead of today's Bastille Day, France's national holiday. He said Europe is not only threatened by the war in Ukraine, but he said there is a threat to its economic model. Let's listen.
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PRESIDENT EMMANUEL MACRON: (Speaking French).
BEARDSLEY: He said, "When companies think they're states and states act like empires," he said, "taking lands and confiscating resources and capturing world markets."
INSKEEP: What do business leaders think of all this?
BEARDSLEY: Well, you know, I was actually talking to winemakers in Burgundy before this latest announcement, and they are huge exporters to the U.S. And they say they've had zero tariffs for decades, and even centuries, and they just don't get this. Winemaker Pierre-Vincent Girardin says the U.S. is his biggest market. Americans love his wine. But that relationship could soon be over because of President Trump's actions. Here he is.
PIERRE-VINCENT GIRARDIN: I have some talks with my distributors, and if the tariffs goes above 20%, they just can't buy. I think by being protectivists and nationalist, he won't really put the U.S. wines higher.
BEARDSLEY: He says it'll just keep people from having the products they want and upend trade.
INSKEEP: Well, maybe he can just pour himself a drink. Eleanor, thanks...
BEARDSLEY: Yeah.
INSKEEP: ...So much.
BEARDSLEY: Thank you, Steve.
INSKEEP: That's NPR's Eleanor Beardsley. Transcript provided by NPR, Copyright NPR.
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