Transatlantic Tariff Tensions Escalate as EU Awaits Trump's Trade Moves

The European Union is on edge as it anticipates a possible declaration from U.S. President Donald Trump regarding increased tariffs on its trade and investment with the U.S., spiking fears of economic disruption. Originally aiming for a comprehensive trade agreement, the EU now faces the reality of settling for an interim deal.

Germany, pushing for a swift agreement to protect its industries, faces opposition from other EU members like France, who warn against succumbing to unilateral U.S. terms. Trump's recent tariff announcements not only target the EU but have affected close allies such as Japan, South Korea, and Canada, causing unease worldwide.

EU representatives, while optimistic about a potential accord, remain alert to the risk of escalating trade tensions that could sway financial markets. EU countermeasures are prepared yet held back, as both sides navigate fragile negotiations. Meanwhile, U.S. and Chinese officials engage diplomatically in Asia amidst America's divisive trade strategy.

(With inputs from agencies.)