U.S. threatens 30% tariff on EU imports, sparking fears of a trade war worth $1.96 trillion.

The U.S. has threatened a 30% tariff on EU imports, raising fears of a trade war that could severely impact global economies. The EU is preparing retaliatory tariffs on U.S. goods, including aircraft, car parts, and alcohol, and is exploring broader trade partnerships to reduce dependency on the U.S. market. The tariffs threaten to disrupt trade valued at $1.96 trillion and could shave off growth in the EU and particularly Germany. Trade officials hope to reach a deal before August 1st to avoid these measures.