tv DW News - News Deutsche Welle June 1, 2018 8:00am-8:30am CEST
this is g.w. news live from bird life and the united states slaps tariffs on exports from his closest allies and they found out to retaliate tariffs on aluminum and steel from europe to mexico and canada went into effect just a few hours ago that targeted trio promised a counterpunch of american goods is this the start of a trade war also coming up he's back after abandoning his bid to the italy's prime minister last week decepticon top of the book take the post after all this after
the two main populist parties made a last ditch deal to form a government. i'm sorry kelly welcome to the program thanks for joining us. the european union is waking up to an economic gut punch just a few hours ago the united states impose tariffs on steel and aluminum on the european union and it is doing the same to canada and mexico negotiations in paris to avert the tariffs failed and now all three are vowing to retaliate with counter measures against u.s. products the german chancellor angela merkel is calling the u.s. tariffs illegal and warning that a standoff could spiral into a global trade war. canada is the largest exporter of steel and aluminum to the u.s. both metals are critical for the american defense industry with applications in aircraft
and tanks in canada could be considered a national security threat to the united states is inconceivable the northern neighbor says it will now impose proportional import tariffs on u.s. products as diverse as yogurt coffee washing machines and lawn mowers. to the south mexico has promised its own tariffs on u.s. products like lamps pork and flat steel. across the atlantic representatives of europe's strongest economy and export leader germany reacted with similar frustration. to get in charge of the decision by the us government is wrong. it's harmful for europe as well as for the united states. and brussels they were already drawing up a list of retaliatory measures. this is a but they probably were. european union can look. react to that
we've got a new kind of reaction so really you need to introduce a sort of a dispute. on the on the w t o. likely candidates for targeted products motorcycles bourbon cranberries and oranges out of the united states. and we have team coverage this morning let's bring in claire richardson who is standing by in washington max huffman standing by in brussels and hans brandt has the latest from berlin and clare first of all like to begin with you and talk a little bit about the justification that the united states is using for these tariffs they've said that it's because of national security issues but with this being some of its closest allies how are they justifying that. good morning sara that's right the most recent thing we've heard from u.s. commerce secretary wilbur ross is to try and try and turn this on this head on its
head to say that the european union in fact failed to convince washington not to impose these tariffs during the most recent round of talks of course when the trump administration introduced these tariffs back in march they did so want to national security basis is that having a strong domestic aluminum and steel industry in the united states was essential not just for economic security but also for defense for things like building tanks and airplanes and so it seems that trump is willing to burn bridges with some of the united states' closest allies in order to follow through on this threat and it's not clear what the end game is in targeting the european union despite months of pressure campaigns from european leaders to try and avoid these tariffs with a permanent or even another temporary exemption ok so lots of questions about the strategy here but you know given the max what is the use position on all of this first of all was it prepared for this and second of all how is it likely to react. it's not like this came as a surprise the commissioner in charge to sue him armstrong said as early as tuesday
that she expected this to happen this way to play out this way but there still was a glimmer of hope until the very last moment because the last two times when trump granted the exemption he did so at the last hour but this being the european union of course they are well prepared they had prepared for weeks now there are large amounts of paper being produced for example lists with goods that would be under retaliatory measures received that and then that report earlier for example orange juice or harley davidsons and all that but it'll take a while to impose that and of course the member states will have to sign off and we already heard for example from the german economy minister this morning. saying that this will take some time because they want to make sure that this is all within the legal framework of the world trade organization absolutely heard so many of those ministers actually speaking in the past twenty four hours and i actually want to turn on now because you know germany france the whole of the e.u. i mean the the basic language that has been coming out of all of these has been
that this is illegal and in fact i'd like to listen to what germany's foreign minister said a short while ago and then get your reaction. just again i don't know if the right answer to america first is you know european nights if this didn't catch us by surprise you know at the same time we don't think it makes sense we also don't think it's legal to say so doesn't make sense it's not legal but hans to you in berlin now because what can they really do. well as knox has just been explaining and as the german economics minister said again this morning what the european union and germany want to do is stay within the legal frame but what they're talking about is the framework of the world trade organization they feel that these tariffs opposed by the united states contravene the world trade organization rules and that since they are illegal and the european union and germany want to stay on the legal side of the world trade organization rules which is why they are going
through through the prescribed channels of notifying they would have world trade organization of the steps that are to be taken and waiting for approval from the world trade organization before imposing further tariffs before retaliating from the european side but i had my appeared to admire the german economics minister also said this morning that he was quite angry about the way things have developed because in fact he has been trying to gather with his european colleagues for weeks if not months to try and avert this and to speak to the americans in fact they have been very open in the negotiations they've said if there are any matters of complaint from the american side they were prepared to talk to them but not while being threatened or why the sanctions have been imposed and let's talk a little bit more about those negotiations because clear i mean the timing of this is interesting you know a trade delegation headed to paris the commerce secretary in fact so why announce this now. absolutely well the timing is not surprising when
they were first announced back in march. very soon after we saw exemptions granted to some of the united states key allies like canada mexico and the european union after an outcry and these were set to expire at the end of may so this expiration date has come up they have been able leaders from europe including personal visits by chancellor angela merkel and french president and manual to d.c. to try and lobby not to put these tariffs into place have clearly failed and we've reached the end of may and the trump administration has gone ahead and said that they are going to go ahead with the threats that they made and it's getting a lot of blowback there in the u.s. even domestically i mean it's not just internationally some prominent u.s. republicans have been criticizing this decision by the u.s. administration claire saying that it's simply not the right target but the larger issue is overcapacity in china right why isn't that being addressed or is it.
that's right it is interesting to see that lawmakers from even within donald trump's own party have come out with some very strong words against this a rare moment of bipartisan bipartisan criticism of the president because it's wildly it's widely agreed that that china dumping that cheap steel on the market is a problem these u.s. lawmakers say that it doesn't make sense to go after key u.s. allies like the european union mexico and canada and partners that could very well be needed in any kind of future negotiations with china are certainly needed to solve some of the biggest and most pressing foreign policy issues that the united states is facing today just briefly before we go bad for germany here but this could get worse in fact because coupled with this announcement we also had donald trump saying that there is no separate treat investigation into automotive imports tell us more about that. yes indeed the steel tariffs on that's serious for the
european and the german economy but if trump doesn't retaliate again by imposing tariffs on column makers that would really hit especially the german economy very seriously because the exports of cause to the united states run into the hundreds of thousands per year it's a matter of billions of dollars involved so if it gets to that stage then things will become really tough really serious and that's something that germany is trying to avoid at all costs almost there's certainly going to be continuing pressure to continue negotiations to continue talking and that's in fact what german politicians apart from their anger have been saying again and again in the last twenty four hours all of the diplomats very busy at this hour hans brown with the latest from berlin also clear richardson in washington and max hoffman the deal from brussels thank you so much all of you. when i monica jones is here and she's
had a look at the numbers on printing some numbers because there are numbers behind all of what's going on right now let's just remember that donald trump has been citing imbalanced trade as a threat to national security as the reasoning behind all those tariffs and how imbalanced is trade between the e.u. and the united states really so let's take a look at some of those figures the united states sold goods worth around two hundred fifty six billion euros to e.u. countries last year and the other way round e.u. countries exported a lot more which is around three hundred and seventy six billion euros to the united states and that means that the e.u. economy gained around one hundred twenty billion euros from trade with the u.s. a large trade surplus while the u.s. economy on the other hand locked in this some as a trade deficit and donald trump wants to tip the balance in his favor with the tariffs he has imposed yesterday or this morning brussels meanwhile has already
announced retaliation with tariffs of its own all together goods with a trade volume of six billion dollars are affected by punitive tariffs so all signs are pointing towards a full blown trade war or are they can anything be done about it let's get some insight now from got fed up about my he's the director of the center for international economics and he joins us in munich good to have you with us just briefly let's look at this trade imbalance first of all and when we look at that short brussels have been more forthcoming in those trade talks in order to clinch a deal with washington. well the problem with these numbers is that they're referred to trade in goods only so this is old economy if you look at services if you look at digital trade if you look into the profits that you ask campinas make in europe you get an entirely different picture and taking everything together the bilateral position between the your p. and union and united states of america is actually quite balanced according to
estimate and there's even a small surplus of fourteen billion u.s. dollars on the american side that needs to be taken into account ok but right now this doesn't seem to be taken into account instead we do have those tariffs and as we heard brussels has already drawn up a list of u.s. products including harley davidson levi jeans whiskey orange juice we heard all that and say we slap terrorists onto those u.s. products now in return is this the right way to hit back so we are now in what some people call a trade war this is stupid it will be economically costly for both sides but it will also be dangerous not to do and is the thing from the european side we do not want to encourage donald trump to go further we don't want to encourage other countries in the world to try to impose similar tariffs or than the united states are doing and that's why europe needs now to do something about it but we are still
in this symbolic area we've heard before that there's still an element of doesn't really matter for the entire european economy so it's not really hurting a lot but we need to react now to show very clearly that we do not let. a violation of the do you see all rules simply happen but will those symbolic mesha prevent terrorists on cars which is something that donald trump himself mentioned not too long ago and that certainly they would talk of terrorists on a very very different level. exactly car tires would be very different we have tried to estimate the economic costs of those tires for charity for example you find five billion euros of damage to german across the rest of product that would be very sizable and indeed we need to do everything to avoid those tariffs but we do think well we need to make clear that we would react strongly if those
terrorists where imposed we are not a situation that would control a cold war and we need to we need to terence and what we can do in europe is to point to that large surplus that the u.s. has in digital trade and we need to save clearly if you will attack us really to the heart of the european economy which is congress then will bring a counter attack into what is the heart of the american economy and that will be digital services now this dispute has been brewing for quite some time do european companies and german companies in particular car industry and so forth to have a plan b. somewhere hidden in a drawer which has to come out now but i think the industry is relatively well prepared and we're talking about the trade conflict since donald trump was elected that's a more than a year ago but the police decisions are not exactly well prepared i would say europe is not really united in this case the situation is very different in
different countries that differently effected by an escalation of the trade war and also the delegates your members are not united what we need to do not insure many is to make sure that you rypien stands to get there in this and that also the other the beauty all members that a similar effected by donald trump's aggressive trade policies stance will gather to defend free trade the right got to have faith in my a director of the if a center for international economics in munich thank you so much you're welcome things. well many economists say that the protective tariff that the u.s. has initiated on steel from its allies i actually meant for china which has been subject to the tariff since march and produces farm was steel then it can use china's trying to negotiate its way out of the threat of high a terrorist for a wide range of products holding out the threat of counter terrorist on a wide range of products from the u.s. including soybeans but american farmers say their business with china is too big to
fail so the comes out of the sea and puts on the lateral. routes for. bread davis is proud of the soybeans he crows on his farm in ohio it's been a good business the high demand has made so i've been small profitable then other crops to the soybean is raised for the protein side and then when it's crushed is what they call it when it's manufactured. it has. the. oil that comes out of it which we can use for it mcdonald's for frying french fries or we actually run our tractors on it because we use biodiesel. soybeans corn wheat bread davis manages his farm together with his stepson and like many farmers here he relies on foreign markets for his business china buys roughly sixty percent of all u.s.
soybean exports therefore david says he's worried about the trade dispute with china. and that's what hurts us as the american farmer because we've developed this . trade with china that it's taking the twenty years to build because actually twenty years ago they exported soybeans and now there are the largest customer the import soybeans they import about fourteen billion dollars worth of soybeans a year. falling prices eroding markets sometimes a rumor is enough says gray davis he once president is trying to negotiate with china to protect u.s. intel next property and manufacturing interests but more than anything he wants to keep his farm it's already affected farmers around here there's a lot of smaller farmers that you know worked in town but yet farmed on the side
that it's got to the point where they can't make a living on it and they've got all the sixpence parade putting that crop out and they're not getting that return on the dollar so there's been a lot of small farm sales already. many farmers here in rural midwest voted for trump in twenty sixteen he thinks outside of the box that's david sounds just like . now they hope he will really reach a deal with china knowing that the consequences of a trade war would be devastating. now washington's trade policy certainly dominating scene but there's other news around the world as well there's not a we're going to talk about that right now and let's have a quick check now of those other stories that have been making news around the world because in the united states victims of sex abuse by the catholic church have reached a two hundred ten million dollars settlement with an archdiocese in the state of minnesota the money will be split among some four hundred fifty people abused by priests in the area the israeli military has released footage of what it says was
an interception of a palestinian vessel off the coast of the gaza strip on tuesday two boats carrying students and medical patients set sail from gaza city's port heading for cyprus. and spain's prime minister mariano rajoy says that he will not resign ahead of a no confidence vote he looks set to lose today spanish media say that russia would no longer has the votes that he needs to survive that could clear the way for the socialist leader pedro sanchez to become prime ghoster. now nearly three months after inconclusive elections that has seen a coalition deal collapse and rise again italy now appears to be headed for a populist government the right wing league party and the anti establishment five star movement have reached a compromise to govern under political novice giuseppi contests but the united mainly by euro skeptic ideals the two party coalition could get proved
a headache for brussels. it was a moment here and had been waiting for it at least president matter rather finally inking a mandate for prime minister designate to be contained to put together a new government it follows a last ditch attempt by the country's two main populist forces to form a coalition after mataram last weekend to the pig for economy minister. we will brick intensely to realize our political objectives which we had already put together in our government contract. we will work with determination to improve the quality of life for all to tell you. an untested alliance will bring together the anti immigrant league party and the anti establishment five star movement. under kaante as prime minister the new
cabinet will include league party chief and anti migration hardline salvini as interior minister five star leader luigi to mio who has championed guaranteed basic income for the poor takes the labor minister portfolio. and paolo savona rejected by the president as to euro skeptic for the post of economy minister now becomes minister for european affairs italians reacted with relief but also a degree of resignation. it's a bit confusing i hope the agree on things because i can't stand it anymore the country needs certainty security and equilibrium. you i think. will do well for the country. and if they don't they can't be any worse than the previous government of the world to me. so now the announcement has
come fears of fresh elections in italy both at home and abroad but with that ambitious anti austerity program and promises to rein in the e.u. the next steps by italy's new populist coalition are sure to be watched very closely by brussels. and for more let's bring in barbara faisal who is standing by with the latest from rome and barbara we heard there from some italian voters in that report confusion but also some optimism is that a good description of the situation. yeah and particularly of course the voters who did give their votes in the march elections to the league and the five star movement and particularly they want to see this government enough is because the last days when you talk to people in the streets here what everybody has said is we voted for these people now we want to see them we want to see them govern and then if that fails. all to bed this is what we what we choose and that was
a very it's a that it was a democratic choice and that's like the most popular sentiment but what we also heard like the desire for for security and for certainty that is rather not likely to come out of this government because the two parties who are not united here in this mismatched coalition have really nothing in common so i think as soon as they have settled into parliament and in the governing palace the infighting will begin and so people here in italy are in for some more difficult and probably chaotic times expected because i mean as we've we've been talking over the past week the prime minister and his political novice he's a newcomer on the scene how about the rest of his cabinet though barbara. it's not only the prime minister who's a newcomer i mean an unknown law professor from a roman university and then the next thing is we have a finance minister who's
a totally unknown economics professor from another roman university when his came up name came up yesterday everybody started googling furiously who for heaven's sake is juvenile need to be nobody ever heard of him and the only thing you could find is that he's probably euro friendly but that's about it so what you have here is a government office novices these people who come into office here in italy was a. country it was a lot of inbred problems of administration of corruption of public failing public services is just people have never organized so much as a town hall. meantime barbara the italian president initially blocking this government because you know we have the nomination of this euro skeptic as as economy minister apollo seven now apparently he's slated to be the minister does the e.u. need to be worried. not really i mean that's the little nasty hand
gesture that mature salvini the leader of the league made to. the president you know you wouldn't let me have my serve on as finance minister now you're going to get him as europe minister but they don't have a lot of power so this is just a gesture towards brussels and towards the president here in italy it doesn't mean that much but it's shows how this government is going to start with a fight baba vessel in rome thank you. to tennis now in the french open where a former champion had her work cut out for her to make round three of the grand slam the unseated serena williams trailed by a set but fought back to take her match against ashley barty in the three meanwhile in the men's draw top seed rafael nadal is through after another straight sets when the spaniard is in fine form and looks on course for an eleventh title on
the paris clay with his twenty thirty second birthday scuse me thirty second birthday coming this week nidal said that he was proud that a bad injury record had not affected his longevity have a listen. you know very happy to do it to keep playing then he said my age because i. i hurt my career that i'm going to have a short career because of my style of game so it's something that i am very satisfied the hobby off that old thought that i had in my career in terms of injuries to be able to keep being gone by the force for so long. a day so for thirty two almost. achieving all that at the age of thirty two congrats to him with that you're up to date now i'm due to be in his i'm sorry kelly in berlin thank you so much for watching have a great a. good. good. good .
good. good. more dream guy international talk show for journalists to discuss the topic of the week twenty five years ago racist al some attack on the house of a turkish family in the german city of zola left two women and three girls standing fourteen others injured the question is does germany change since then find out shortly on foot return. next on d w.
two call smart. take football personally. by you whether. or not the addition of the families will come preview this week's group. will generally have reason to celebrate. team is eager to win the title to get money once again but first they have to get past these guys. in sixty minutes. what does a football loving country need to reach its goals. we'll tell you our german soccer game. back to the top. you know web space. dot com football made in germany. higher and higher further and further dirtier and dirtier. the high gloss world of professional sports
behind the scenes of bitter truth. manipulation exploitation corruption mafia style. of business worth billions but just how murky is the world of sports in reality. dirty games starting june sixth on t w. following a very warm welcome indeed to quote drinker and this week all eyes here in germany have been on the western city over zola going west twenty five years ago a racist arson attack on the house of a turkish family left two women dead and three girls also dead fourteen others were injured.
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