The European Union is bracing for a major trade confrontation with the United States as former President Donald Trump threatens to impose sweeping tariffs—up to 30%—on EU exports. With an August 1 deadline looming and negotiations faltering, the EU is finalizing a robust retaliation plan, including new digital service taxes and the possible deployment of its 'Anti-Coercion Instrument.' European leaders warn that these tariffs could devastate industries on both sides and are preparing countermeasures targeting American goods and tech companies. The escalating rhetoric and lack of a deal have rattled global markets and raised fears of an all-out trade war. Both sides are under pressure to reach an agreement, but the risk of a damaging economic standoff is growing.
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