The United States and European Union are racing to finalize a major trade agreement before an August 1 deadline, with President Trump threatening to impose tariffs of up to 30% on EU imports if no deal is reached. Negotiations have centered on a potential compromise involving 15% reciprocal tariffs, but uncertainty remains as both sides prepare extensive retaliatory measures. European leaders, including Ursula von der Leyen, are set to meet with Trump in Scotland in a last-ditch effort to avoid a transatlantic trade war. The escalating tariff threats have rattled global markets and alarmed European industries, which warn that steep duties could disrupt supply chains and raise consumer prices. If talks collapse, the EU is ready to hit back with its largest-ever package of countermeasures targeting billions in US goods.
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