EU Prepares for Trade Showdown with Trump Over Tariff Threats

The European Commission is on the brink of imposing tariffs on $84.1 billion worth of U.S. goods, such as Boeing aircraft and bourbon whiskey, amidst failing trade negotiations with Washington. This move comes in response to President Trump's threat of a 30% tariff on EU imports starting August 1, which European officials deem unacceptable.

EU leaders were scheduled to meet in Brussels, and trade chief Maros Sefcovic expressed a strong commitment to protecting European businesses with countermeasures should talks with Washington fall through. French Foreign Minister Jean-Noel Barrot criticized Trump's tactics, calling them 'blackmail' while emphasizing the importance of securing a fair trade agreement without becoming subservient to the U.S.

As European shares edged higher on Tuesday owing to automotive stock gains, the Commission continues its consultations on a potential list of U.S. goods for tariffs. The European drinks industry, reliant on the American market, is particularly concerned about possible U.S. retaliation affecting bourbon, wine, and spirits, causing significant unease across France, Spain, and Italy.

(With inputs from agencies.)