Europe’s economic optimism is facing a critical test as US President Donald Trump’s unexpected threat to impose a 30% blanket tariff on EU exports from 1 August reignites fears of a transatlantic trade war.

The European Union has finalized a second list of countermeasures to target U.S. goods worth $84 billion, including Boeing Co. aircraft, automobiles and bourbon, if it decides to retaliate against Donald Trump's tariff policy.

EU trade ministers have agreed that U.S. President Donald Trump’s 30% tariffs announced on the European Union are “absolutely unacceptable,” and they are studying a new set of countermeasures to respond to the move.

Officials have secured an agreement across the bloc to slap tariffs on US goods, ranging from US-made cars to bourbon whiskey.

The European Union could target Boeing and whiskey-maker Brown-Forman under its plans for retaliatory tariffs if the bloc can’t reach a trade deal with the U.S.

Indonesia’s overall commerce with the United States, estimated to reach slightly under $40 billion in 2024, is not among the top 15, although it is expanding

If implemented by the 1 August deadline, the move could derail $1.7 trillion worth of transatlantic commerce and force the EU to reconsider its export-reliant economic structure.

The European Commission is targeting €72bn worth of U.S. goods - from Boeing aircraft and bourbon whiskey to cars - for possible tariffs if trade talks with Washington fail.

Things aren’t looking good for Mexico either. In a letter addressed to Mexican President Claudia Sheinbaum, Trump said that while the country had been “helping me to secure the border.” However, if Mexico wants the US to adjust the levies, it needs to be “successful in challenging the Cartels and stopping the flow of Fentanyl.”