EU, US Rush to Avert 30% Tariff Crisis

President Donald Trump has threatened tariffs of up to 30% on EU goods if no trade agreement is reached by August 1, intensifying transatlantic trade tensions. German Bundesbank President Joachim Nagel warned these tariffs could push Germany into recession in 2025 and erase economic growth projections for 2026, underscoring the threat to the EU’s export-driven economy. The EU, with trade chief Maroš Šefčovič, is urgently dispatching officials to Washington to negotiate and avert the tariffs, while preparing countermeasures if talks fail. Trump claims recent EU flexibility is due to his firm stance, though he dismisses earlier EU concessions on auto tariffs. Investor optimism in sectors like auto manufacturing has already been dampened by uncertainty over potential trade barriers. Both sides recognize that failure to reach a deal could lead to escalating retaliatory measures and severe disruption of transatlantic commerce.