I'm John Baster. This is CBSI in the world. Judy Dempsey, my colleague is here. She's in Berlin,

a senior scholar for the Carnegie Endowment for International Peace. Again, the financial times is very helpful.

Amid efforts to step into the gap left by Washington, European Commission President Ursula van der Leyen proposed a 150 billion euro defense procurement plan package to EU governments on Tuesday.

That is quite separate from the 800 billion pounds London is talking about.

However, it is a great deal of money, no matter whether it's

800 or 150. However, at the same time, governments and markets are also reacting to Trump's

other big decision to impose an additional new tariff of 10% from China, 25% for Canada and Mexico.

And as I understand it, Judy, that 25

percent is coming for the European Union. Have they got a collective response to what's

about to happen or what is threatened to happen? They're certainly trying to get a collective

response, but since Great Britain isn't in the European Union anymore,

Prime Minister Starrmer in order to Washington

and his talks with President Trump

wants the own kind of bilateral arrangement between London and Washington

that Britain will be exempt from these tariffs.

But the European unions are incredibly worried about it, but I think they will stick together.

But the question is they are so dependent on the US economy in so many ways that they know they

are being kind of blackmailed because the sense is that if the US is going to impose tariffs, the whole point

of these tariffs is the Trump administration's goal is to bring European companies to invest

in the United States and come over to the United States. So if you want to escape tariffs,

which are automobile industry and everything else, come over and invest in the United States.

It's pretty crude, but the Europeans haven't released any details so far on what kind of

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