European Commission President Ursula von der Leyen is prioritizing a high-level framework deal, rather than a full comprehensive trade pact, with the US, a strategic move amidst Donald Trump’s threat of a 17% tariff on European food and farm produce exports. This proposed duty would directly impact beloved items such as Belgian chocolate, Irish Kerrygold butter, and olive oil from Italy, Spain, and France, which are highly popular among US consumers.
The stark warning regarding food tariffs was reportedly delivered to EU trade commissioner Maroš Šefčovič during recent talks in Washington with top US officials, underscoring the severity of Trump’s “aggressive negotiating position.”
While the European Union’s trade spokesperson, Olof Gill, reiterated the bloc’s commitment to finding a “negotiated solution” and noted “progress was made towards an an agreement in principle,” the EU is also making robust preparations for a potential trade war. Brussels has signaled its readiness to impose retaliatory tariffs on a wide array of US goods, including Bourbon and Boeing 747s, should Trump proceed with his proposed duties before the Wednesday deadline.
Von der Leyen’s pursuit of a framework deal acknowledges the impracticality of securing a comprehensive agreement in the short term. A key demand from the EU within this framework is immediate tariff relief for vital industries, particularly the auto sector, which currently grapples with a substantial 27.5% US tariff. The expiration of the 90-day tariff pause for dozens of countries, including the EU, on Wednesday, intensifies the pressure on these crucial trade negotiations.