Trump Warns of New Tariffs in EU Trade Standoff

President Donald Trump now assesses the chances of a U.S.-EU trade deal before the August 1 deadline as '50-50, maybe less,' warning that failure could result in a new 30% tariff on most EU goods and continuation of a 25% duty on cars and auto parts. Negotiations have been ongoing since early July, with the EU seeking a 15% baseline tariff and exemptions for key sectors. If no agreement is reached, the EU's $109 billion in retaliatory tariffs will take effect on August 7. Trump also suggested the possibility of offering tariff rebates to some Americans and stated that Canada is unlikely to avoid higher tariffs due to stalled talks. The ongoing uncertainty is affecting global markets and prompting U.S. auto dealerships to prepare for potential price increases and supply issues. The situation underscores Trump's effort to reduce trade deficits, despite the financial impact on U.S. importers and consumers.