00:00 Speaker A
Now we're looking at live pictures of President Trump and British Prime Minister Keir Starmer in Scotland, the two meeting to hash out trade deal details. The meeting comes after the US and the European Union reached a massive trade agreement over the weekend. Here are the details of what's in the deal, who stands to win the most and also by the way what's not in the deal because there are still some details that are still being worked out. But we're joined by the host of Yahoo Finance's Market Sunrise, Romson Kamali with all of this. Hi Romson, what can you tell us about the deal?
00:44 Romson Kamali
Hi Julie. Yes, so overall, it's a 15% tariff on EU imports coming into the US in general or on most goods. Um, the deal basically has come about, I think it's been met with a sense of relief more than anything else. I don't think it's been, I don't think, you know, the champagne corks are flying per se across Europe, but it has been met with a sense of relief because remember, on liberation day back in April, we were looking at tariffs for Europe between 30 to 50%. So there is some relief there, but don't forget before President Trump took office, according to EU estimates, you know, the tariff rates on both sides was just at 1%. So this is still an increase in the amount of levies that are going to be having to be paid on European imports into the US. Now there are certain winners and losers. Uh, just look at the car industry, for example, if you take German cars around 30 billion, maybe 35 billion dollars worth of German cars alone came into the US last year. And the tariff rate there was, look, we're looking at 27 and a half percent, that's been dropped to 15%. So you think you'd get a positive response from shares, but as you can see there, Volkswagen down almost 4% today. There was a positive response in this at the start of the trading day, but then since then when, when traders have started to look more closely at the detail, those stocks have started to retreat. Um, it's a bit of a confusing picture on pharmaceuticals, for instance. The EU were very adamant to say that the 15% was, pharma was included in the 15% levy, but that's not been quite confirmed yet either. Uh, but one of the big winners has got to be, you've got to say, is US energy. Uh, the EU, as well as the 600 billion that they are going to invest into the US, they're also going to be spending around $750 billion on US energy as well. So US energy a big winner. And aviation on both sides, on the EU side and on the US side looks like a winner as well. The European Commission President Ursula von der Leyen said that certain strategic products within aviation would be tariff-free on both sides. So there are winners and losers on both sides, but I'll I'll leave you one thing, though. There are 27 countries in the EU. All 27 have to sign off on this deal, and that's not a complete given. And the French prime minister today said today was a somber day for Europe.
05:30 Speaker A
Interesting. So we'll see if there is some friction down the line. Thank you so much, Romson. Appreciate it.
