Donald Trump’s trade war rhetoric has intensified with a direct threat to impose a 17% tariff on European food and farm produce exports. This aggressive move, which emerged from recent talks in Washington, could severely impact popular European goods such as Belgian chocolate, Irish Kerrygold butter, and olive oil from Italy, Spain, and France, all of which are major sellers in the American market.
The warning was reportedly delivered to EU trade commissioner Maroš Šefčovič during his meeting with US Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Commerce Secretary Howard Lutnick. EU ambassadors were swiftly briefed on the potential economic fallout, signaling the gravity of Trump’s aggressive negotiating stance.
Despite the escalating tensions, the European Union maintains a preference for a negotiated solution, with spokesperson Olof Gill confirming ongoing progress towards an agreement in principle. However, the EU has also made it clear that it is preparing for a potential trade war, with retaliatory duties on various US products, including Bourbon and Boeing 747s, if an amicable resolution isn’t reached before the upcoming deadline.
This latest tariff threat is consistent with Trump’s broader strategy, as he plans to send letters to approximately a dozen countries, imposing permanent tariffs of up to 70% after his self-imposed July 9 deadline for trade deals. European Commission President Ursula von der Leyen highlighted the difficulty of securing a comprehensive deal within the tight timeframe, instead aiming for a high-level framework agreement. The EU is also seeking immediate tariff relief for critical sectors, particularly the auto industry, which currently faces a substantial 27.5% US tariff.