In a stunning escalation of tensions, former President Donald Trump has threatened to impose a staggering 30% tariff on goods from Mexico and the European Union, sending shockwaves through international trade circles. The ultimatum, set to take effect on August 1, has ignited outrage among EU trade ministers who believed they were on the brink of a significant trade agreement with the U.S.

In an emergency meeting convened today, EU negotiators labeled Trump’s tariff threat as “absolutely unacceptable” and are now scrambling to formulate a robust response. While Brussels has thus far refrained from enacting counter-tariffs, the bloc is preparing to retaliate if negotiations with Washington collapse. A new list of EU goods worth €72 billion is under consideration for potential levies, adding to an existing list of €21 billion already approved and awaiting action.

The suddenness of Trump’s letter has left EU officials reeling, as they were optimistic about reaching a mutually beneficial deal. “We noted with regret and disappointment the letter sent by the United States president,” one EU minister stated, emphasizing the unexpected nature of this threat. The confusion surrounding whether this is merely a negotiation tactic adds to the uncertainty, with some officials suggesting that the U.S. administration’s strategy appears increasingly erratic.

As the clock ticks down to the August deadline, the stakes are high. The transatlantic trade relationship is vital, with $4.6 billion in goods and services exchanged daily. The EU is striving to avoid a full-blown trade war, but the prolonged negotiations are causing anxiety among businesses on both sides of the Atlantic.

With the global economy hanging in the balance, the EU’s next steps will be crucial. Will they stand firm against Trump’s aggressive tariffs, or will they seek a compromise to avert economic fallout? The world watches closely as this high-stakes drama unfolds.