The European Union braced on Friday to receive a letter from U.S. President Donald Trump, outlining planned duties on his largest trade and investment partner after a broadening of his tariff war in recent days.

U.S. President Donald Trump is threatening to slap a 35 per cent tariff on all Canadian goods as the two countries have been engaged in negotiations to reach some sort of trade agreement.

US President Donald Trump speaks during a multilateral lunch with visiting African Leaders in the State Dining Room of the White House in Washington, DC, on July 9, 2025.

U.S. and European stock futures slid in Asia on Friday after President Donald Trump stepped up tariff threats against Europe and Canada, snuffing out an early rally in regional share markets.

The European Union faces a challenging trade landscape as U.S. President Donald Trump plans new tariffs on the EU and other countries. Amid internal EU disagreements, the bloc aims for an interim deal with the U.

Trump’s tariffs and the trade war continue to affect global markets. Follow along for live updates on the Dow, S&P 500 and Nasdaq.

U.S. President Donald Trump issued final tariff notices to seven minor trading partners on Wednesday as his administration inched closer to a deal with its biggest trading partner, the European Union.

"The EU and China are broadly on a colliding trajectory in terms of their trade and industrial policy concerns," he told CNBC. Bones of contention include the challenge of China's overcapacity and trade diversion to Europe, Stec, who is also head of the Mercator Institute's Brussels office, explained.

The European Union is ready to finish an outline trade deal with the U.S. and is waiting to hear from the Trump administration, a spokesman said. President Trump told NBC News on Thursday that he expected to send a letter to the EU imminently outlining tariffs the bloc would have to pay.

The European Union will not receive a letter from the Trump administration laying out higher tariffs and there is a possibility of exemptions from the U.S. baseline levy of 10%

With duties set to resume on Aug. 1, numerous foreign governments are now rushing to finalize deals with the White House. That includes the European Union (EU), of which Trump spoke favorably on Tuesday as he claimed that a framework agreement with the bloc was near.

President Donald Trump has sent out tariff letters to seven smaller U.S. trading partners in his first batch of import tax announcements of the day.