The United States and European Union are racing to finalize a major 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 reportedly brought the sides close to a deal involving 15% reciprocal tariffs, but uncertainty remains as Trump describes the chances as '50-50.' The EU has prepared a massive countermeasure package targeting over €90 billion in US goods should talks collapse, raising the specter of a transatlantic trade war. European industries and global markets are on edge, with potential impacts on consumer prices, supply chains, and economic growth. The outcome of these talks could reshape global trade dynamics and set a new standard for international tariffs.
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