President Donald Trump on Saturday announced he’s levying tariffs of 30% against the European Union and Mexico.

The EU is prepared to retaliate if the U.S. imposes a 30% tariff on European goods. European leaders vow unity and caution against U.S. trade policies. The potential tariffs could significantly impact EU exporters and American consumers,

The EU is ready to retaliate to safeguard its interests if the U.S. proceeds with imposing a threatened 30% tariff on European goods starting on August 1, European Commission President Ursula von der Leyen said on Saturday.

One-fifth of the EU’s exports are heading to the US. Tariffs on the carmaking sector hit the German economy the most, but potential tariffs on the pharmaceutical one could cost substantially to the Irish economy.

Germany's Economy Minister Katherina Reiche warns that President Trump's proposed 30% tariffs on EU imports could harm European exporters and US consumers. She advocates for a swift and pragmatic resolution to the trade conflict to prevent further economic damage amid rising tensions.

The US economy is expected to slow the rest of the year as tariffs take a bigger toll on consumers and businesses, immigration constraints intensify

Bearish outlook comes a year after state investor opened Paris office and promised to commit $19bn to the region