Trade wars between the European Union and the US have reignited. Recent developments indicate that both sides are willing to retaliate against each other.

US President Trump has threatened to increase tariffs on European Union goods. The European Union is preparing to respond accordingly.

The European Commission announced that if negotiations over tariffs on cars and other products fail, it will take countermeasures. These measures will cover US products worth 95 billion euros.

The EU hopes to reach an agreement to mitigate the effects of the tariffs that the US plans to implement on July 9. However, if negotiations fail, retaliation will occur.

The costs of the trade wars are rising. Experts indicate that this situation could lead to a contraction in the job market. Consumer confidence has also dropped to historic lows.