EU-US Trade Talks Enter New Phase After Trump's Latest Threat
The US-EU tariff talks were thrown another curveball after President Donald Trump warned the bloc would face a 30% rate next month if better terms can't be negotiated. German Chancellor Friedrich Merz said the tariff would hit exporters in Europe's largest economy 'to the core' if a negotiated solution can't be found. European Commission President Ursula von der Leyen struck a conciliatory tone by extending the suspension of trade countermeasures against the US until Aug. 1 to allow for further negotiations, while continuing to prepare further retaliatory steps. The EU's bazooka anti-coercion instrument won't be used at this point, she said. Meanwhile, the bloc is also preparing to step up its engagement with other countries targeted by Trump's tariff threats, including Japan and Canada, for possible coordination, we've been told. 'Europe has the economic power to make its position heard and to reach an equitable and fair deal,' Italian Prime Minister Giorgia Meloni said. So for now, negotiations continue.
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