Trump threatens 17% tariff on food and agricultural exports from Europe

The United States of America threatens to impose 17% tariffs on agricultural exports from European Union countries. Brussels is looking for a balance between concessions and a symmetrical response. This is reported by UNN with reference to Financial Times, The Guardian. 

DetailsIt is noted that Donald Trump, during negotiations in Washington this week, threatened to impose 17% tariffs on food and agricultural exports from Europe.

Such tariffs will affect everything from Belgian chocolate to Kerrygold butter from Ireland and olive oil from Italy, Spain, and France, which are in high demand in the US.

According to three sources familiar with the negotiations, US President Donald Trump has temporarily suspended the introduction of an additional “mirror” tariff of 10% on imports from the EU. This tariff was supposed to be in addition to the basic 10% tariff on imports from most countries of the world, introduced by the head of the White House on April 9.

European officials had hoped until the last moment that negotiations with the US would allow tariffs to remain at the basic rate. It is currently unclear whether the new 17% food tariffs will apply in addition to or instead of other previously announced tariffs.

The head of the White House demands that Brussels provide American companies with broad exemptions from regulation, as well as reduce the EU’s trade surplus with the US. However, European officials rejected such proposals from Washington.

The main focus of the negotiations is currently on exceptions. One EU representative said that Brussels is seeking tariff exemptions for certain goods, including aircraft parts and alcoholic beverages.

According to him, the parties are working on a five-page draft “agreement in principle,” but so far, the agreed part of the document remains minimal.

European Commission President Ursula von der Leyen stated on Thursday, July 3, that she hopes for an agreement in principle that will allow the parties to continue negotiations until a final agreement is reached. 

EU Trade Commissioner Maroš Šefčovič was informed of the intention to introduce 17% tariffs on agri-food products during meetings in Washington on Thursday. This was reported to the ambassadors of the 27 EU member states on Friday.

Trump said he would send letters to about a dozen countries to inform them of the imposition of permanent tariffs of up to 70% after July 9 — his self-imposed deadline for more than 60 countries from Japan to Lesotho to reach a tariff agreement.

Their value will range from 60% or 70% to 10% and 20%, but they (the letters) will start arriving tomorrow.

EU trade representative Olof Gill said on Friday evening that the EU’s priority remains “reaching a negotiated solution.”

He added that “progress was made in reaching an agreement in principle during the last round of negotiations held this week,” and negotiations will continue “substantively over the weekend.”

RecallThe European Union is ready to accept a trade agreement with the US with a 10% universal tariff, but wants lower rates in key sectors such as cars, steel, and aluminum. The agreement must be concluded by July 9 to avoid tariffs rising to 50% on almost all European exports to the US.

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