The Aug. 1 deadline for higher rates to kick in is just 10 days away, putting the heat on U.S. trade partners.

Howard Lutnick, the U.S. Commerce Secretary, said on Sunday that a trade agreement between the United States and the European Union is still within reach, but the clock stops on August 1. That’s the final deadline for everyone,

President Trump has threatened to slap a 30% tariff rate against the EU and a flurry of customized tariff rates on other countries that fail to cut a new deal with him.

An escalatory spiral that leads towards Eurasia's 10% 'trade war' scenario, however, would prompt Brussels to deploy escalatory measures, such as "export controls/duties, public procurement curbs, and/or penalties on U.S. services exports" by using the ACI "trade bazooka as a last resort," they concluded.

President Donald Trump's announcement of 30% tariffs on the European Union will have repercussions for companies and consumers on both sides of the Atlantic.