The European Union is employing a two-pronged approach – intense negotiation and robust trade war preparation – in response to Donald Trump’s threat of a 17% tariff on European food and farm produce exports. This significant tariff would impact beloved European goods such as Belgian chocolate, Irish Kerrygold butter, and olive oil from Italy, Spain, and France, all highly popular in the US market.
The warning was reportedly delivered to EU trade commissioner Maroš Šefčovič during talks in Washington with top US officials, underscoring the seriousness of the situation. This aggressive move aligns with Trump’s history of assertive trade negotiations, where he aims to secure significant concessions from trading partners.
While EU trade spokesperson Olof Gill reiterated the bloc’s preference for a “negotiated solution,” noting that “progress was made towards an agreement in principle” during recent discussions, the EU’s preparedness for escalation is evident. Brussels has made it clear that it will respond with its own duties on US exports, ranging from Bourbon to Boeing 747s, if Trump’s tariffs are enacted.
European Commission President Ursula von der Leyen emphasized the pragmatic goal of a high-level framework deal, recognizing the challenge of securing a comprehensive agreement in the short timeframe. A key demand from the EU is immediate tariff relief in crucial sectors, particularly the auto industry, which currently faces a punitive 27.5% US tariff. The looming July 9 deadline, marking the end of a 90-day tariff pause for over 60 countries, adds a critical sense of urgency to these ongoing trade negotiations.
EU’s Two-Pronged Approach: Negotiation and Trade War Prep
