EU envoys will meet this week as the U.S. signals its intention to raise tariffs above 10% on most European products.
Tensions between the United States and the European Union are rising as President Donald Trump takes a more aggressive stance in ongoing trade negotiations ahead of the self-imposed deadline of August 1.
According to Odaily, EU envoys are preparing to meet this week to develop a contingency plan in case of a 'no-deal' scenario. While both sides have expressed a preference to continue talks, insiders say that no significant progress has been made since last week's negotiations.
Sources familiar with the matter indicate that the U.S. is now pushing for tariffs above 10% on a wide range of EU products. Only a limited set of exemptions—covering aerospace, some medical devices, generic pharmaceuticals, and certain alcoholic beverages—are under consideration.
The hardline approach has generated concern in European capitals. Diplomats warn that the EU may be forced to escalate its response if the U.S. imposes unilateral tariffs. A senior EU envoy noted that any return to pre-negotiation tariff levels could provoke proportional retaliatory measures, rekindling fears of a renewed transatlantic trade war.
The hardened rhetoric of the Trump administration aligns with its broader protectionist political platform, which includes relocating manufacturing, defending domestic industries, and recalibrating trade balances with strategic partners. The move is also part of a series of aggressive economic policy maneuvers ahead of the 2025 U.S. election cycle.
The next two weeks will be critical as negotiators rush to find common ground. Market analysts are closely watching developments, noting that a collapse in trade negotiations between the U.S. and the EU could increase volatility in stock markets, disrupt supply chains, and further complicate global inflation dynamics.