A trade war alarm has sounded as the EU prepares for retaliatory measures in response to Donald Trump’s threat of a 17% tariff on European food and farm produce exports. This significant tariff, if implemented, would target well-loved European goods such as Belgian chocolate, Irish Kerrygold butter, and olive oil from Italy, Spain, and France, which are big sellers in the US market.
The warning was reportedly delivered to EU trade commissioner Maroš Šefčovič during talks in Washington with senior US officials. This aggressive stance aligns with Trump’s history of assertive trade negotiations, where he aims to secure significant concessions. EU ambassadors were briefed on Friday, underscoring the seriousness of the situation.
Despite the escalating rhetoric, 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. However, the EU is also making its readiness for a potential trade war abundantly clear, with plans for retaliatory duties on various US products, including Bourbon and Boeing 747s, should Trump proceed with his tariff threats before the Wednesday deadline.
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 expiration of the 90-day tariff pause for over 60 countries, including the EU, on Wednesday, adds a critical sense of urgency to these ongoing trade negotiations.