The US has announced its intention to impose a 17% tariff on agricultural exports from the European Union amid escalating trade tensions between Washington and Brussels. This issue has become particularly pressing ahead of the July 9 deadline, by which both sides plan to finalize a new trade agreement.
This is reported by Finway
Trade Standoff: Positions of the Parties
According to informed sources, the proposal for new tariffs emerged at the last moment and was perceived by EU officials as an escalation of tensions in transatlantic relations. Previously, European officials had expected that both sides would maintain tariffs at their current levels; however, it is now unclear whether the 17% would be in addition to the already announced tariffs or would replace them.
The EU is trying to secure exemptions for certain categories of goods, including aircraft parts and alcoholic beverages. Work on a five-page draft of a principle agreement is ongoing, but the document currently contains few agreed provisions.
EU Reaction and Possible Scenarios
European Commission President Ursula von der Leyen expressed hope that the parties would reach a principle agreement that would allow negotiations to continue toward signing a final deal. On Thursday, it was reported that EU Trade Commissioner Valdis Dombrovskis was informed about the possibility of imposing 17% tariffs on agricultural products during meetings in Washington, and the following day, the information was shared with the 27 ambassadors of EU member states.
Dombrovskis has repeatedly emphasized that changing the rules in favor of the US is a “red line” for the EU, although the European Union is already moving toward deregulation by relaxing some environmental standards. There is no consensus among EU countries: some are willing to agree to an increase in tariffs in exchange for certainty, while others insist on retaliatory measures to increase pressure on the US.
Diplomats report that the US is considering three possible scenarios for action after July 9. For countries that agree to a “principle agreement,” 10% tariffs will remain in place with possible gradual easing; for those who do not reach an agreement, tariffs imposed in April will remain in effect until a deal is reached; and for countries that the US believes are not negotiating in good faith, even higher tariffs are planned.
“The EU’s position has been clear from the very beginning: we advocate for a negotiated solution with the US, and this remains our priority. At the same time, we are preparing for the possibility that a satisfactory agreement may not be reached.”