In an escalating trade conflict, President Trump has set a July 4 deadline for the European Union to finalize a trade deal, threatening to impose much higher tariffs on EU automobiles if an agreement is not reached. The President announced plans to increase tariffs on cars from the EU to 25%, which could significantly impact the luxury car market. EU negotiators acknowledge that there is still progress to be made, while Trump remains firm, reiterating his stance that non-compliance will lead to increased tariffs. The auto industry, particularly in Germany, is bracing for potential losses, estimated at nearly $18 billion, if the tariffs take effect. As tensions rise, both sides are under pressure to find common ground to avoid further escalation.