Can US-EU Trade Talks Prevent Tariff Escalation Before Deadline?

As the deadline for trade negotiations between the US and the EU approaches, European leaders are emphasizing the need for a swift resolution to avoid a tariff escalation. Key figures such as German Chancellor Friedrich Merz and French President Emmanuel Macron advocate for a prompt agreement, although not at any cost.

The EU is preparing for both a successful deal and the possibility of imposing retaliatory tariffs if talks fail. Despite efforts, there is skepticism about eliminating tariffs entirely.

The Trump administration has hinted that negotiations could extend beyond the set deadline, offering a glimmer of hope for a more comprehensive agreement. Meanwhile, the European pharmaceutical industry has cautioned against retaliatory measures, fearing increased costs for consumers.

The situation remains tense as both sides weigh the potential outcomes of ongoing discussions.