The United States and European Union are racing to finalize a trade agreement before an August 1 deadline, with President Trump threatening to impose tariffs of up to 30% on EU imports if no deal is reached. Negotiations have narrowed to a possible compromise involving 15% reciprocal tariffs, but uncertainty remains as Trump rates the chances of a deal at '50-50.' European leaders, including Ursula von der Leyen, are preparing both for a last-minute agreement and for major retaliatory measures targeting billions in US goods should talks collapse. The escalating standoff has rattled global markets and raised fears of a transatlantic trade war that could disrupt supply chains and raise consumer prices worldwide. Both sides are bracing for significant economic consequences if negotiations fail.
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