In a dramatic escalation of trade tensions, President Donald Trump is facing fierce retaliation from the European Union and Canada over his controversial July tariff measures. Just moments ago, EU officials announced they are finalizing a comprehensive package of countermeasures aimed at U.S. industries, including aviation, technology, and agriculture, in response to Trump’s aggressive tariff policies. This comes as the EU grapples with staggering losses of over €60 billion under Trump’s administration, prompting leaders to declare that the long-standing cooperative relationship with the U.S. is effectively over.

As the July 9 deadline looms, EU leaders have made it clear that if a reasonable trade agreement is not reached, they will unleash retaliatory tariffs targeting U.S. products worth up to $100 billion annually. French President Emmanuel Macron highlighted the unprecedented damage to transatlantic relations, revealing that the EU has already suffered nearly $52 billion in losses during a recent 90-day tariff pause. Meanwhile, Trump is doubling down, threatening to impose liberation tariffs of up to 50% on European goods, igniting fears of an all-out trade war.

The stakes are high as stock markets react to this brewing conflict, with analysts warning that U.S. GDP could shrink by 0.5% to 0.7% next year if the EU follows through with its retaliatory measures. Businesses across the Atlantic, from Boeing to small tech firms, are bracing for potential upheaval as the EU shifts from a defensive to an offensive stance in this trade chess game.

As tensions mount, Canada is also preparing to retaliate, signaling a united front with the EU against Trump’s unilateral tariff strategy. This unprecedented alignment of allies raises critical questions about the future of U.S. economic leadership and the sustainability of Trump’s high-risk tariff policies. The world watches closely as the countdown to July 9 continues, with the potential for significant repercussions on both sides of the Atlantic.