Trump Threatens 30% Tariff on EU Imports August 1

President Donald Trump has threatened to impose a 30% tariff on nearly all EU imports starting August 1, which has escalated transatlantic trade tensions and surprised EU leaders. In response, the European Union has prepared multiple retaliatory measures, including a €21 billion package ready for implementation and a proposed list targeting up to €72–73 billion ($84 billion) in US goods if talks collapse. EU officials are unified in their readiness to respond but are currently holding off on immediate action to allow for negotiations, acknowledging the risk of economic harm from a trade war. Some EU leaders, such as Ireland's Simon Harris, view Trump's threat as a negotiating tactic, while others warn that restraint could weaken the EU's stance. Financial markets remain cautiously optimistic, with the euro stable, though analysts caution that prolonged uncertainty could have negative long-term effects. The EU is also actively seeking alternative trade partners, recently signing a new agreement with Indonesia to reduce reliance on the US.