The European Union is pushing to secure a trade deal with the U.S. ahead of President Donald Trump's Aug. 1 deadline.

The August 1 deadline gives the countries time to negotiate agreements that could lower the tariffs. Some investors and economists have also noted Trump's pattern of backing off his tariff threats.

Donald Trump has decided to jack up tariffs on every single good coming from Europe, pushing for a baseline rate of 15% to 20% in the next trade deal, according to the Financial Times. This comes after multiple rounds of back-and-forth talks with Brussels that aimed to hold tariffs at 10%,

European exporters say a 30% U.S. import tariff would drive prices unsustainably high and hammer their sales. While some manufacturers are shifting their supply chains stateside or elsewhere, not all businesses have the same flexibility — and can't easily replace the developed U.

EU trade ministers have agreed that U.S. President Donald Trump’s 30% tariffs announced on the European Union are “absolutely unacceptable,” and they are studying a new set of countermeasures to respond to the move.

Shares of U.S. spirits distillers slid in late trading amid reports that President Trump is pushing for a 15%–20% baseline tariff on imports from the European Union. Faced with the possibility of reciprocal tariffs on American exports of wine,

President Trump threatens to raise tariffs, claiming the European Union won't buy U.S. cars or food — but 2024 trade data shows otherwise.

The EU has reverted to offering the US tit-for-tat tariff reductions on cars, with negotiators abandoning the idea of a complex “netting mechanism” first proposed by German carmakers.