1 00:00:01,833 --> 00:00:03,666 AMNA NAWAZ: For more on the U.S. trade war with Europe, we turn now to Jovita 2 00:00:03,666 --> 00:00:07,333 Neliupsiene, the European Union's ambassador to the United States. 3 00:00:07,333 --> 00:00:10,300 Madam Ambassador, welcome back to the "News Hour." Thanks for joining us. 4 00:00:10,300 --> 00:00:12,200 JOVITA NELIUPSIENE, European Union Ambassador to the United States: Well, thank you for having me. 5 00:00:12,200 --> 00:00:15,466 AMNA NAWAZ: So, as we reported, these tariffs largely target products made 6 00:00:15,466 --> 00:00:20,466 in Republican states, products from Kansas and Nebraska, Alabama, Georgia, Louisiana. 7 00:00:22,233 --> 00:00:26,666 Is it your hope here that Republican lawmakers will speak up and apply 8 00:00:26,666 --> 00:00:29,133 pressure to President Trump to roll back the tariffs, 9 00:00:29,133 --> 00:00:34,133 or do you hope that President Trump starts to lose support from his base in these states? 10 00:00:36,266 --> 00:00:38,766 JOVITA NELIUPSIENE: Well, first of all, let's start from the beginning. We actually deeply 11 00:00:38,766 --> 00:00:43,733 regret that the tariffs are introduced for the E.U. products on steel and aluminum. 12 00:00:45,966 --> 00:00:50,933 We never saw the tariffs as really the measure to foster trade, or -- and we see it actually as 13 00:00:55,433 --> 00:01:00,433 a harm for the transatlantic trade relations. But we have to react, and our reaction will be prompt, 14 00:01:07,000 --> 00:01:12,000 and we will reinstitute the tariffs we already had and discussed back in 2018 and 2020. 15 00:01:19,766 --> 00:01:22,266 AMNA NAWAZ: And is it your hope here that Republican lawmakers will see that 16 00:01:22,266 --> 00:01:26,966 and want to save their states and start to apply pressure? Have you been in touch with any of them? 17 00:01:26,966 --> 00:01:31,966 JOVITA NELIUPSIENE: Well, we really had a lot of conversations with senators and congressmen here 18 00:01:34,000 --> 00:01:38,400 in D.C. trying to send one single message that tariffs are really not for the best 19 00:01:42,666 --> 00:01:47,633 of the transatlantic relations, so we hope that everyone can send a message, the same message. 20 00:01:49,966 --> 00:01:54,200 AMNA NAWAZ: We did see how quickly the terms -- even between the U.S. and Ontario, for example, 21 00:01:56,633 --> 00:01:59,333 there was an escalation there, then it was a quick de-escalation. You saw Ontario slap a surcharge on 22 00:02:01,666 --> 00:02:04,466 electricity exports; 24 hours later after a call between the premier there and the U.S. commerce 23 00:02:06,700 --> 00:02:10,533 secretary, Ontario rolled back that surcharge, and now the two are meeting in Washington tomorrow. 24 00:02:11,966 --> 00:02:15,766 What would it take for the E.U. to roll back your tariffs? 25 00:02:15,766 --> 00:02:19,900 JOVITA NELIUPSIENE: We stand ready for talks and for the negotiations. 26 00:02:19,900 --> 00:02:24,900 We repeatedly expressed our interest in talking. And if you -- you probably noticed that we not 27 00:02:27,166 --> 00:02:31,633 only published our intended reciprocal measures. We as well informed public that they will be 28 00:02:34,266 --> 00:02:39,266 they come into effect at the 1st of April, so there is enough time for the conversations. 29 00:02:41,266 --> 00:02:43,133 AMNA NAWAZ: And is it your hope that something happens 30 00:02:43,133 --> 00:02:46,600 before April 1 that means you don't have to put the tariffs into place? 31 00:02:46,600 --> 00:02:51,566 JOVITA NELIUPSIENE: Well, we always have a hope for their for the really constructive, 32 00:02:53,366 --> 00:02:56,800 constructive talks, because none of us will benefit from the tariffs, 33 00:02:58,300 --> 00:03:02,700 because, one, it's always -- it raise the cost for the business. 34 00:03:02,700 --> 00:03:07,700 It may inflict inflation in the U.S. It weakens in general supply chains, 35 00:03:09,866 --> 00:03:14,866 which are the supply chains of transatlantic partners and in general supply chains of allies. 36 00:03:18,000 --> 00:03:23,000 So we don't see how it could be beneficial for both sides of Atlantic. 37 00:03:25,100 --> 00:03:27,466 AMNA NAWAZ: Madam Ambassador, as you know, when the E.U. trade commissioner was here in 38 00:03:27,466 --> 00:03:31,133 Washington to meet with the commerce secretary, Howard Lutnick, last month, he was trying to head 39 00:03:31,133 --> 00:03:36,133 off these tariffs. He came out of that meeting and he said -- quote -- "The E.U. is not the problem." 40 00:03:37,366 --> 00:03:39,633 Is Commerce Secretary Lutnick someone you can 41 00:03:39,633 --> 00:03:43,700 work with on this? And if not who in the White House can you work with. 42 00:03:43,700 --> 00:03:47,000 JOVITA NELIUPSIENE: Well, of course, commerce -- Secretary 43 00:03:47,000 --> 00:03:52,000 of Commerce Lutnick is really our prime contact, as well as USTR Greer. 44 00:03:55,466 --> 00:03:59,900 We are ready to talk whoever is willing to talk and make an 45 00:03:59,900 --> 00:04:03,500 action that those tariffs would be -- revert. 46 00:04:03,500 --> 00:04:04,900 AMNA NAWAZ: You say you're ready to talk. Is it fair 47 00:04:04,900 --> 00:04:08,166 to say those conversations are already under way? 48 00:04:08,166 --> 00:04:12,533 JOVITA NELIUPSIENE: Well, we always say here have to have them. And we already -- as you mentioned, 49 00:04:12,533 --> 00:04:17,433 we already had a very in-depth conversation with Secretary Lutnick, 50 00:04:17,433 --> 00:04:19,700 and we are ready to continue them. 51 00:04:19,700 --> 00:04:23,866 AMNA NAWAZ: Let me ask you about the U.S. tariffs on steel, because the E.U. does 52 00:04:23,866 --> 00:04:28,066 stand to lose millions of tons in steel exports under those tariffs. As you know, 53 00:04:28,066 --> 00:04:33,066 the U.S. is the second biggest export market for E.U. steel. We know European markets were 54 00:04:35,200 --> 00:04:38,866 already deeply impacted by the energy crisis that was spurred by Russia's war in Ukraine. 55 00:04:40,700 --> 00:04:43,433 What has been and what could be the impact of those tariffs not just on 56 00:04:43,433 --> 00:04:46,533 the E.U. steel industry, but on European economies? 57 00:04:46,533 --> 00:04:50,700 JOVITA NELIUPSIENE: As the E.U., we are not the major trading partner in 58 00:04:50,700 --> 00:04:55,700 steel and aluminum for U.S. So we don't constitute a problem since 59 00:04:57,200 --> 00:05:00,866 2018 that our exports of steel and aluminum actually decreased. 60 00:05:02,666 --> 00:05:07,533 I really do believe that the impact for economies is always there, because we 61 00:05:10,633 --> 00:05:15,633 not only kind of -- it not only impacts the certain sector which get tariffs on, 62 00:05:17,900 --> 00:05:22,900 but as well there are the services around that. It contributes to the 63 00:05:24,366 --> 00:05:29,133 weakening of the trade links and the trust of the supply chains. 64 00:05:31,166 --> 00:05:35,233 AMNA NAWAZ: Madam ambassador, beyond commodities, the E.U. bought an estimated 65 00:05:35,233 --> 00:05:40,233 $61 billion of military equipment from the U.S. between 2022 and 2024. 66 00:05:42,366 --> 00:05:45,433 And, as you know, after the U.S. cut off arms and intelligence support to Ukraine, there were 67 00:05:45,433 --> 00:05:50,100 a number of European leaders who were reportedly very worried that the U.S. could do the same 68 00:05:50,100 --> 00:05:55,100 to them. Will the E.U. continue to buy military equipment from the U.S.? Do you see that changing? 69 00:05:57,600 --> 00:06:00,533 JOVITA NELIUPSIENE: Well, so far as we see from the reports, 70 00:06:00,533 --> 00:06:05,500 we have no evidence that the U.S. would be cutting some kind of the sales or 71 00:06:07,566 --> 00:06:12,533 productions for the European countries. And we very much rely on the supplies from U.S., 72 00:06:16,833 --> 00:06:21,800 because a lot of NATO capabilities are actually built on U.S. platforms. 73 00:06:21,800 --> 00:06:24,900 AMNA NAWAZ: But is there a concern about the reliance on America? I mean, 74 00:06:24,900 --> 00:06:28,400 is the U.S. still considered a reliable partner to you on this front? 75 00:06:28,400 --> 00:06:33,400 JOVITA NELIUPSIENE: We spend almost 60 percent of our defense budgets in 76 00:06:35,233 --> 00:06:39,033 acquiring capabilities, ammunition and different defense-related products from 77 00:06:40,366 --> 00:06:43,366 U.S. I really strongly believe it will remain so. 78 00:06:43,366 --> 00:06:46,033 AMNA NAWAZ: That is the European Union's ambassador to the United 79 00:06:46,033 --> 00:06:48,900 States, Jovita Neliupsiene, joining us tonight. 80 00:06:48,900 --> 00:06:52,400 Madam Ambassador, thank you so much for your time. Good to speak with you. 81 00:06:52,400 --> 00:06:53,333 JOVITA NELIUPSIENE: Thank you.