The European Union (EU) is threatening to tariff American car exports if trade negotiations fail.
Tariffs on $107 billion of exports, including cars and vehicle parts, could take effect in July if the U.S. does not lift tariffs on $428 billion of EU goods.
The tariff dispute could persist over time, with EU preparing to issue a dispute with the World Trade Organization if U.S. tariffs are not lowered.
Retailers and brands are bracing for potential 20% price increases with the impact of tariffs affecting sourcing, pricing strategies, and customer behavior.