US-EU Trade War Looms as 15% Tariff Deal Nears, But Europe Prepares $100 Billion Retaliation

The United States and European Union are racing to finalize a trade agreement that would impose a 15% tariff on most EU goods entering the US, aiming to avoid President Trump's threatened 30% tariffs.

Despite progress in negotiations, the EU is preparing a massive €93-100 billion ($109-117 billion) package of retaliatory tariffs on US products if talks collapse. European leaders warn that failure to reach a deal could trigger one of the harshest transatlantic trade wars in history, impacting industries from cars to wine. Markets have responded to the news, with European equities rising on hopes of a deal, but uncertainty remains high as the August 1 deadline approaches.

Both sides are keeping their options open, with the EU hardening its stance and readying countermeasures to protect its economic interests.