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 fast approaching and negotiations stalling, European officials are preparing a range of countermeasures, including retaliatory tariffs, digital service taxes targeting US tech giants, and the possible deployment of the EU's new 'Anti-Coercion Instrument.' The escalating rhetoric and policy brinkmanship have rattled markets and raised fears of a full-blown trade war that could disrupt global supply chains and damage both economies. Key industries at risk include automobiles, wine, and luxury goods, with European leaders vowing a tough response if the US follows through. The standoff underscores deepening transatlantic tensions and the high stakes for global trade.
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