US Commerce Secretary Howard Lutnick was among the top officials who warned EU trade commissioner Maroš Šefčovič of Donald Trump’s proposed 17% tariff on European food and farm produce exports. This direct threat targets popular European goods such as Belgian chocolate, Irish Kerrygold butter, and olive oil from Italy, Spain, and France, all significant sellers in the American market.
The high-stakes meeting in Washington, also involving US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, underscores the seriousness with which the US is pressing its trade demands. This aligns with Trump’s history of assertive trade negotiations, where he aims to secure significant concessions from trading partners.
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 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.
European Commission President Ursula von der Leyen has advocated for a high-level framework deal, acknowledging the impracticality of securing a comprehensive agreement in the short term. A key demand from the EU 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.