EU Seeks “Agreement in Principle” on Trade, Brace for Tariffs

The European Union is pushing for an “agreement in principle” on trade with the US, even as it braces for the possibility of Donald Trump imposing 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 was reportedly delivered to EU trade commissioner Maroš Šefčovič during recent talks in Washington with top US officials, including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. This action underscores Trump’s continued “aggressive negotiating position,” as he seeks to gain leverage over the EU.
EU trade spokesperson Olof Gill confirmed that “progress was made towards an agreement in principle” during the latest round of discussions and that talks would continue through the weekend. However, the EU is simultaneously preparing for a potential trade war, with plans for retaliatory tariffs on a broad spectrum of US products, including Bourbon and Boeing 747s, if a resolution isn’t reached before the Wednesday deadline.
European Commission President Ursula von der Leyen has advocated for a pragmatic, 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 has been hit hard by a substantial 27.5% US tariff. The looming July 9 deadline for the expiration of the 90-day tariff pause for numerous countries, including the EU, further intensifies the pressure on these crucial trade negotiations.