00:00If you want to play ball, this is what you have to pay.
00:03After a vague and verbal truce announced in July, the U.S.-EU trade deal is finally in writing.
00:10The joint statement published on Thursday sees a 15% tariff imposed on about 70% of European exports to the United States,
00:18including pharmaceuticals and semiconductors, which U.S. President Donald Trump previously said were excluded from the deal
00:24and could face tariff rates as high as 250% and 100% respectively.
00:30This is the most favorable trade deal the U.S. has extended to any partner.
00:38A wide range of sectors, including strategic industries such as cars, pharmaceuticals, semiconductors and lumber, will benefit from this cap.
00:48The deal has left one sector disappointed, wine and spirits.
00:52EU negotiators didn't succeed in their effort to get them exempted from the new rate.
00:57It's an area that both sides had enjoyed zero tariffs since 1997.
01:02We must work to preserve this American market.
01:06I would add that for every dollar of wine and spirits exported to the U.S.,
01:10five dollars of revenue is generated in the United States.
01:13So the stakes are just as important, if not more important, for the American industry than for France and Europe.
01:18For European car makers, on the other hand, the new rate comes as a relief, although with a caveat.
01:26The import duty will only come down from the current 27.5% once the EU formally introduces legislation
01:32that would relax duties on American industrial and agricultural products.
01:36Unlike some other nations, the EU won't see the standard 15% rate stacked on top of existing ones,
01:44and sector-specific duties that are already higher will remain unchanged.
