Overview

• President Trump announced 30 percent tariffs on imports from the European Union and Mexico to take effect August 1.
• The European Commission has drawn up €21 billion in immediate counter-tariffs together with a broader €72 billion list targeting U.S. exports such as Boeing planes and Kentucky bourbon.
• Trade Commissioner Maroš Šefčovič’s emergency trip to Washington concluded without a compromise before the implementation deadline.
• Key EU member states including Germany and France are divided over the scale of retaliation amid concerns it could harm their own industries.
• Analysts at Pantheon Macroeconomics and Oxford Economics warn that prolonged duties at current levels risk tipping the Eurozone into recession by late 2025.