EU and US on the Brink: Trade Tensions Heat Up with Tariff Talks

The European Union is on edge as it anticipates a communication from U.S. President Donald Trump, who plans to impose duties on its largest trade ally. Initially, the EU aimed to secure a comprehensive trade agreement with zero tariffs on industrial goods, but recent discussions suggest an interim agreement may be the best option.

Germany advocates for a quick deal to protect its industry, while countries like France emphasize not conceding to a one-sided U.S. agreement. In the face of uncertain negotiations, Trump has unveiled new tariffs targeting Japan, South Korea, and notably, a significant increase on Canadian goods, sparking investor concern.

As the trade tension exacerbates, the EU considers countermeasures. However, efforts to avoid escalation remain. With eyes on developments, markets await further clarity, acknowledging Trump's volatile approach to trade policies, which holds financial markets on edge.

(With inputs from agencies.)