U.S. President rejects EU auto tariff proposal, raising risk of retaliation ahead of August deadline.U.S. President Donald Trump is demanding that tariffs on European Union (EU) goods remain at 15%–20%, according to TechFlow, a move that marks a sharp escalation in trade tensions between the two economic blocs. This stance abandons earlier discussions where both sides considered maintaining tariffs at 10% on most goods.Trump has reportedly dismissed the EU’s proposal to lower auto tariffs, insisting on keeping them at 25%. Even if an agreement is reached, U.S. negotiators are now considering a baseline “reciprocal tariff” above 10%, further hardening the American position.A senior EU diplomat warned that if Trump maintains his current demands, it could force the bloc to retaliate and revert to tariff levels in place before negotiations resumed in April 2025.The intensifying trade standoff comes amid broader geopolitical uncertainty and rising inflation pressures. Analysts say these tariff developments may inject new volatility into global markets, especially as Trump plans to unveil targeted tariffs on specific EU industries by August 1.This increasingly protectionist tone forms part of Trump’s broader economic agenda, aimed at boosting U.S. manufacturing and reasserting trade dominance. However, the EU has signaled it will not concede without securing balanced terms.
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