EU Optimistic for Deal, But Prepared for Trade War Over Tariffs

Despite Donald Trump’s aggressive threat of a 17% tariff on European food and farm produce exports, the EU remains optimistic for a high-level political agreement, even as it prepares for a potential trade war. The proposed tariff would impact popular European items like Belgian chocolate, Irish Kerrygold butter, and Mediterranean olive oil, which are major sellers in the US.
The warning was reportedly conveyed to EU trade commissioner Maroš Šefčovič during recent talks in Washington with senior US officials. This development underscores Trump’s consistent “aggressive negotiating position,” aimed at extracting concessions.
EU trade spokesperson Olof Gill confirmed that “progress was made towards an agreement in principle” during the latest round of negotiations and that talks would continue. This optimism for a negotiated solution coexists with a clear preparedness for a trade war, with the EU outlining retaliatory tariffs on a range of US products, from Bourbon to Boeing 747s, if Trump proceeds with his plans before Wednesday.
European Commission President Ursula von der Leyen has advocated for a pragmatic, high-level framework deal due to the time constraints, similar to the UK’s approach. A key objective for the EU is to secure immediate tariff relief in crucial sectors, particularly the automotive industry, which currently faces a punitive 27.5% US tariff. The looming July 9 deadline, marking the end of a 90-day tariff pause for over 60 countries, adds considerable urgency to these critical trade discussions.