The European Union and the United States are locked in high-stakes negotiations to avoid a damaging trade war, with President Trump threatening to impose tariffs of up to 30% on EU imports starting August 1. European Commission President Ursula von der Leyen is set to meet Trump in Scotland in a last-ditch effort to secure a deal, while both sides prepare extensive retaliatory measures in case talks collapse. The proposed agreement could see baseline tariffs of 15% on many goods, but key sectors like autos and steel remain contentious. European industries are sounding alarms over the potential economic fallout, and EU member states have already approved a massive counter-tariff package targeting US products. The outcome of these talks will have major implications for global supply chains, consumer prices, and the broader international trading system.
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