Sat Jul 12 22:38:00 UTC 2025: Okay, here’s a summary and a news article based on the provided text, written from an Indian perspective:

**Summary:**

The European Union is preparing to retaliate against the United States if President Trump follows through with his threat to impose a 30% tariff on European goods starting August 1, 2025. This comes after what the EU perceived as promising negotiations and cordial communication. EU officials view Trump’s move as a negotiating tactic, but the bloc is ready to implement countermeasures, including tariffs on U.S. goods. The EU is grappling with whether to compromise or adopt a firm stance, which may involve using anti-coercion instruments against the U.S. impacting trade and service relationships. European leaders are united in their resolve to defend EU interests. While some analysts see potential for Trump to back down, the EU is bracing for potential economic consequences, with the European Central Bank projecting reduced growth and inflation if the tariffs are enacted.

**News Article:**

**From Trade War to Brinkmanship: EU Prepares Response to Trump’s Tariff Threat**

*The Hindu*, July 13, 2025

Brussels: The European Union is bracing for a potential trade war with the United States after President Donald Trump threatened to impose a 30% tariff on European goods starting August 1. The move has surprised EU officials, who believed recent negotiations were progressing positively.

Ursula von der Leyen, head of the EU executive, stated the bloc is ready to “safeguard EU interests” by implementing proportionate countermeasures, including tariffs on U.S. goods, if Trump proceeds. EU ambassadors are meeting to discuss options, with trade ministers convening on Monday to decide whether to impose tariffs on $21 billion euros of U.S. imports or extend a suspension that expires the same day.

European capitals are united in their stance, with Germany’s Economy Minister Katherina Reiche calling for a pragmatic outcome and French President Emmanuel Macron emphasizing the need for the European Commission to “defend European interests resolutely.”

Analysts believe Trump’s tariff threats may be a negotiating tactic. Carsten Brzeski, global head of macro at ING, believes the US-EU trading relationship is reaching a make-or-break moment.

The potential fallout extends beyond Europe, with implications for global trade and the economies of both continents. The European Central Bank has already factored in potential U.S. tariffs into its economic projections, forecasting reduced growth and inflation within the Eurozone.

India, as a major player in the global economy, is watching the situation closely. A prolonged trade war between the EU and the U.S. could disrupt supply chains, impact global growth, and create both challenges and opportunities for Indian businesses. Observers say an escalation could force India to recalibrate its trade relationships and seek new avenues for economic cooperation.

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