President Trump's threatened 50% tariff on EU goods looms, impacting trade worth $2 trillion annually. While initially imposing a 20% tariff, later paused, Trump's latest threat could significantly raise prices for European products in the US. The EU, prepared to retaliate with its own tariffs, hopes for a deal. Economists warn of negative consequences for both sides, with higher prices for US consumers and potential GDP losses. A compromise, possibly maintaining a 10% tariff while ironing out a formal agreement, seems likely, though negotiations remain tense.

Prepared by Christopher Adams and reviewed by editorial team.