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The US-EU trade relationship is on the verge of collapse as Donald Trump threatens a massive 50% tariff on all EU imports. Citing a $250 million trade deficit and slow progress in negotiations, Trump took aim at the EU’s economic policies, calling them unfair and damaging to American interests. The announcement sent shockwaves through global markets.
EU officials are scrambling to respond, with Commissioner Maroš Šefčovič affirming Europe’s willingness to negotiate—on equal footing. European leaders warned of wide-ranging economic consequences and consumer price spikes if tariffs are enacted. With counter-tariffs already on the table, both economies may be heading toward a costly showdown.