EU Prepares for Trade War Amid US Tariff Announcement

The announcement of a 20% blanket tariff by President Trump has sparked widespread concern and confusion among both domestic and international leaders. European officials, including French Prime Minister François Bayrou and EU Commission chief Ursula von der Leyen, have condemned the tariffs as catastrophic, warning of severe economic consequences and expressing readiness to retaliate. EU Trade Commissioner Maros Sefcovic plans to engage in discussions with US counterparts, aiming for a unified response while balancing negotiation opportunities. The tariffs could significantly impact various industries, with predictions suggesting a rise in inflation and increased costs for American households. Additionally, businesses like Mercedes-Benz may reassess their operations in the US due to the financial strain from these tariffs. As the geopolitical landscape remains fragile, uncertainty looms over the potential for further escalation in trade tensions.