Willing to burn bridges with those european allies in order to back up those industries and those are often areas where he has a lot of Domestic Support politically and its interesting today we were told that the europeans would be able to get over this quickly georg you know you could argue that europe has seen this coming along is there any shock tonight in brussels thats right they have seen this coming theyre well prepared they have informed the w t o they have reaffirmed the im legislation but of course tonight you have this moment of shock that actually the the day it is now clear that all the hard work all the dialogue all the last minute efforts have been in vain. People are or they were Still Holding out for in a woman a War Resolution the means theyre there were pretty delegations meeting trying to find a solution. Right we released all these Lobbying Efforts right up until the last
minute we knew that the temporary exemptions that the European Union and canada and mexico had
just tell me what the broader implications are for transatlantic relations because the fact is the u.s. has just turned up the heat. it is without a doubt very dark day for transatlantic relations between the e.u. and its key ally in international relations with the united states we have seen this starting with the election of trump throughout the campaign everybody was for hearing the message but what we re not sure if that will actually take place then when he walked away from the paris climate a court it got more clearer when he walked away from the iran nuclear deal the message was very clear and now we have the tariffs being slapped on on on europe and even things like the recent introduction of the data protection rules are now called as by the commerce secretary ross as new hidden trade barriers so it s a really really difficult situation and europeans have been keen working behind the
has called hidden trade barriers so there s a whole set of things that could inflame this conflict a corresponding month as in brussels tonight unclear richardson on the story for us in washington to both of you you thank. for preparing for the financial fallout from all of this helmet is here with that angle of the story did you hear that was the sound of business ties i m afraid brant hitting across the atlantic at the e.u. and mexico devaluing to retaliate canada has already fallen through all of this leading to fears of a trade war the u.s. called the sexual roughs makes it sound like european media is a just blowing the whole situation out of proportion take a listen terrorists are a fraction of one for us on products the beer soft drink and soup because it s all a fraction of
a global trade war but from where you re sitting tonight that danger does it seem stronger than ever retaliate but not ask that is the policy of the european union but of course if you take a look at the bigger picture you do not only have the scenario of a tit for tat war at the spokes person off of the german chancellor said that there s a we were looking at potentially of cycle of of escalation here that the u.s. has has provoked and the bigger picture tells you we also have the situation of the iran nuclear deal that the u.s. has walked away from so if the e.u. continues to trade with iran this could have potential counterterrorist coming from the u.s. then there s also a data protection law that has been passed that the u.s. has called hidden trade barriers so there is a whole set of things that could inflame this conflict or corresponded to remount
seeing is that rather than slapping tariffs on imports countries are going about it in a more subtle way my question to you so what if they do countries have a right to protect their economies has it really hurt global trade. you know absolutely actually we show in a recent study doubt these so-called muntari various are increasing since the financial crisis in particular in two thousand and nine and to give you an example we mean with that is like you know german exports for example they need to implement different bumpers on the u.s. market or on the on the india market and this makes trade more expensive and our study illustrates that if these non-tariff barriers were not in place global trade could be larger by around half a trillion us dollars so it s a significant trade reducing instrument which you observe increasingly in the last five years that i think it s surprising that we see germany on that list with hidden trade barriers because trump has spoken out against the country s