Trade War Fears Mount as Trump Targets EU Food with New Tariffs

Fears of a transatlantic trade war are escalating after Donald Trump threatened a 17% tariff on European food and farm produce exports to the United States. This aggressive move, revealed during recent discussions in Washington, has put popular European items like Belgian chocolate, Irish Kerrygold butter, and Mediterranean olive oils squarely in its sights, potentially impacting billions in trade.
The direct warning was reportedly given to EU trade commissioner Maroš Šefčovič by senior US officials, including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. This latest development highlights Trump’s continued “aggressive negotiating position,” a strategy he has long employed to extract concessions from trading partners, having even labeled the EU as “nastier” than China in trade.
While the EU’s trade spokesperson, Olof Gill, confirmed that negotiations are still aiming for a “negotiated solution” and that “progress was made towards an agreement in principle,” the bloc is not taking the threat lightly. The European Union is actively preparing for a potential trade war, with plans to impose retaliatory tariffs on a broad spectrum of US products, from American spirits to commercial aircraft, if a resolution isn’t found before the Wednesday deadline.
European Commission President Ursula von der Leyen has stated that the EU is seeking a high-level framework deal, acknowledging that a comprehensive agreement is too difficult to achieve in the limited time. A key demand from the EU is immediate tariff relief for critical industries, particularly the automotive sector, which is currently burdened by a substantial 27.5% US tariff. The expiration of the 90-day tariff pause for over 60 countries, including the EU, on Wednesday, intensifies the pressure on all parties involved in these high-stakes negotiations.