EU Prepares Retaliatory Tariffs Amid Escalating Trade Tensions with US

The European Commission is drafting a tariff hit list targeting $845 billion in US goods, equivalent to 74 billion euros, as trade tensions escalate. Cars and bourbon are among the items facing levies. The MOVE comes in response to President Trump's threat to impose a 30% tariff on EU goods starting August 1, aimed at addressing the $235.6 billion trade deficit.

French and German bonds have already slumped to levels last seen during the eurozone debt crisis, sparking investor concerns over the future of the $1.7 trillion transatlantic trade partnership. EU Trade Commissioner Maros Sefcovic warned that the proposed tariffs WOULD make it "almost impossible to continue trading as usual."

Negotiations remain fraught, with the EU previously securing exemptions and reductions for key exports like automobiles. The new tariffs add further complexity to discussions that began in April, when TRUMP first floated a 20% levy before temporarily reducing it to 10%.