President Donald Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the EU starting on Aug 1, after weeks of negotiations with major US trading partners failed to reach a comprehensive deal.

Tajani also told daily Il Messaggero that to help the euro zone economy, the European Central Bank should consider a new “quantitative easing” bond-buying programme, and more interest rate cuts.

The EU said yesterday that it would extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement.

Tajani said the €21-billion package of tariffs the EU has already prepared could be followed by a second set if a deal with the US proves impossible.

He added, however, that he was confident that progress could be made in negotiations.

“Tariffs hurt every one, starting with the US.

“If stock markets fall that puts at risk the pensions and the savings of the Americans,” he added.

He said the goal should be “zero tariffs” and an open market among Canada, the US, Mexico and Europe.

German Chancellor Friedrich Merz said yesterday that he would work intensively with French President Emmanuel Macron and European Commission president Ursula von der Leyen to resolve the escalating trade war with the US.