EU-US Trade Tensions Escalate as August 1 Deadline Looms

EU trade chief Maros Sefcovic heads to Washington for high-stakes tariff talks with U.S. officials. The meeting follows President Trump's threat to impose a 30% tariff on imports from the EU, a move that could severely disrupt trade between these major markets.

The European Commission has prepared retaliatory tariffs totaling 72 billion euros, targeting U.S. products like aircraft and whiskey, if negotiations fail. This preparation comes as businesses like ASML warn of delays in U.S. investment decisions due to the ongoing tariff uncertainty.

European companies face a drop in earnings amidst these trade tensions, with currency exchange rates adding further strain. The deadline for resolution is August 1, but historical patterns suggest President Trump may reconsider his tariff threats, allowing room for negotiation.

(With inputs from agencies.)