The European Central Bank probably isn't going to cut interest rates again on Thursday. That's because the bank's leaders don't know what kind of headwinds they'll be facing from U.S. trade policy.

The European Commission plans to submit counter-tariffs on 93 billion euros ($109 billion) of U.S. goods for approval to EU members, while its trade chief will hold talks with U.S. Commerce Secretary Howard Lutnick.

The European Union will merge two packages of potential tariffs against the U.S. so that both are ready to take effect in early August if no deal has been reached with the Trump administration. The combined list will need approval from EU member states and could take effect as soon as Aug.

As the two biggest economic targets in Donald Trump’s trade war, some analysts thought the European Union and China could move closer together and stake out common ground.

The United States appears firm on its slated tariff increase on the EU following comments made by U.S. Commerce Secretary Howard Lutnick over the weekend.

The threat of an all-out trade war between the U.S. and the E.U. has put European auto stocks in reverse throughout 2025. At the close of business on Tuesday, the Stoxx Europe 600 Autos index XX:SXAP was still down more than 5% for the year compared to the overall Stoxx Europe 600 XX:SXXP benchmark’s 7% return.

European Union officials are set for a summit with China’s top leaders. China’s support of Russia and a long list of trade disputes are on the agenda.

As the EU digs in, President Trump announced two more deals and finalized a third, most notably a pact with Japan. “I just signed the largest deal in history with Japan," Trump