EU-US Trade Talks Face Tariff Threats, Uncertainty

The European Union is finalizing urgent negotiations with the United States for a trade deal intended to shield key industries from steep tariffs set to begin as early as August 1. The talks focus on exempting Airbus and offering relief to German automakers like BMW and Mercedes, though luxury brands such as Ferrari may not receive protection. The proposed agreement may set a baseline 10% tariff with sector-specific carve-outs, but details are still under debate due to political divisions among EU leaders. President Trump has threatened tariffs of 50-70% on EU imports if no deal is reached, leading to uncertainty and a pause in business investment. Negotiators may settle for only a framework deal to extend discussions, meaning some economic hardship for Europe is likely. The outcome will affect €1.6 trillion in transatlantic trade and has significant global economic implications.