Donald Trump’s threat of a 17% tariff on European food and farm produce exports is just one part of a broader, more aggressive trade strategy. He has indicated plans to impose permanent tariffs of up to 70% on around a dozen countries after his July 9 deadline, revealing a “nastier” approach to global trade that could severely impact Europe’s beloved exports like Belgian chocolate, Irish butter, and Mediterranean olive oil.
The direct warning regarding food tariffs was delivered to EU trade commissioner Maroš Šefčovič during discussions with top US officials in Washington. This move highlights Trump’s consistent “aggressive negotiating position” as he seeks to extract a high price from trading partners.
Despite the escalating threats, the European Union maintains its commitment to a “negotiated solution,” with spokesperson Olof Gill confirming that “progress was made towards an agreement in principle.” However, the EU is also making preparations for a potential trade war, signaling its readiness to impose retaliatory tariffs on a wide range of US products, from Bourbon to Boeing 747s, if Trump proceeds with his plans before Wednesday.
European Commission President Ursula von der Leyen has advocated for a high-level framework deal, acknowledging the difficulty of achieving a comprehensive agreement within the tight timeframe. A crucial demand from the EU is immediate tariff relief in key sectors, particularly the automotive industry, which has been hit by a substantial 27.5% US tariff. The looming deadline and the expiration of the 90-day tariff pause for numerous countries further intensify these critical trade negotiations.
