Trade Tensions Escalate: EU and U.S. On Brink of Tariff Clash

The EU accuses the U.S. of resisting efforts to finalize a trade deal, warning of retaliatory measures if new tariffs by President Trump are imposed. With impending 30% tariffs on EU and Mexican goods, global discussions intensify. EU and Mexican officials hope for last-minute negotiations to prevent economic backlash.

The European Union has alleged that the United States is stalling efforts to negotiate a trade agreement, issuing a warning of potential counteractions if President Donald Trump implements the proposed tariffs starting August 1.

Trump expressed readiness to continue discussions with the EU before enforcing the 30% tariffs next month, with European officials scheduled to visit the U.S. Meanwhile, the EU is preparing retaliatory tariffs worth €21 billion ($24.5 billion) if negotiations collapse.

Mexican President Claudia Sheinbaum indicated optimism about reaching a security deal, clarifying that any agreement would exclude U.S. military presence in Mexico. With European stocks dipping and global industries bracing for impact, diplomatic efforts are in a last-minute scramble to avert economic fallout.

(With inputs from agencies.)