Trump’s Trade War Escalates: Food Tariffs Loom for EU

The specter of a full-blown trade war looms larger as Donald Trump escalates tensions, threatening a 17% tariff on European food and farm produce exports. This aggressive move, unveiled during recent discussions in Washington, targets a broad array of popular European goods, from artisanal chocolates to dairy products and olive oils, which are significant draws for American consumers.
The stark warning was conveyed directly to EU trade commissioner Maroš Šefčovič by high-ranking US officials, including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. This action underscores Trump’s consistent and “aggressive negotiating position,” as he seeks to extract concessions from the EU, a bloc he once controversially labeled “nastier” than China in trade.
While the European Union’s trade spokesperson, Olof Gill, reiterated the bloc’s preference for a “negotiated solution” and progress toward an “agreement in principle,” the EU is not taking the threat lightly. Brussels has made it unequivocally clear that it is prepared for a potential trade war, with a readiness to impose retaliatory tariffs on key US exports, including Bourbon and Boeing 747s, if Trump’s demands are not met before the upcoming deadline.
European Commission President Ursula von der Leyen has advocated for a more pragmatic, high-level framework deal, acknowledging the unlikelihood of a comprehensive agreement in the short term. A crucial demand from the EU is immediate tariff relief for critical sectors, especially the auto industry, which is currently burdened by a hefty 27.5% US tariff. With the 90-day tariff pause expiring for dozens of countries on Wednesday, the pressure to reach a resolution is intense.