EU Braces for Tariff Consequences Amid Stalled U.S. Trade Talks

In a critical juncture for international trade, European officials are confronting significant challenges in their negotiations with the United States. The two parties are struggling to establish a 10% baseline for "reciprocal" tariffs, a stance firmly held by the U.S. and resisted by the EU.

U.S. President Donald Trump has increased tariffs on trading partners, including a 50% levy on steel and aluminum, and a 25% tax on cars, complicating the landscape for negotiations. The EU, aiming to prevent tariffs from climbing further, contests the 10% baseline amid fears of economic repercussions.

The broader trade discussions have cast a shadow over various sectors, with European automakers like Mercedes and Volvo withdrawing financial forecasts due to uncertainty. As the negotiations linger, the potential for broader impacts across industries becomes increasingly apparent.

(With inputs from agencies.)