Trump threatens 17% tariffs on EU's food and farm produce as regional bloc prepares for a trade war

US President Donald Trump threatened to impose a 17 per cent tariff on food and farm produce from Europe during talks in Washington this week. Sources close to the matter confirmed to the Financial Times that the EU trade commissioner, Maroš Šefčovič, was given the warning on Thursday.

If such tariffs come into place, it would hit almost every crucial European food items from Belgian chocolate to Kerrygold butter from Ireland and olive oil from Italy, Spain and France. All of these products have been big sellers in the US for decades. The warning was given when the EU official met the US treasury secretary, Scott Bessent, trade representative Jamieson Greer and commerce secretary Howard Lutnick.

As per the report, EU ambassadors were briefed on the threat on Friday. Meanwhile, the regional bloc remains optimistic for a high-level political agreement, but the threat gives a flavour of the US’s continued aggression. In the past, Trump called the EU “nastier” than China when it came to trade.

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Meanwhile, Trump said that he will write to 12 nations telling them he will impose permanent tariffs of up to 70 per cent after 9 July. He also has a self-imposed deadline for more than 60 countries, from Japan to Lesotho, to reach a tariff deal.

“They’ll range in value from maybe 60% or 70% to 10% and 20% but they [the letters] are going to be starting to go out sometime tomorrow,” he told reporters. On Friday evening, EU trade spokesperson Olof Gill said that the EU’s priority continued to “favour a negotiated solution”.

“Progress was made towards an agreement in principle during the latest round of negotiations, which took place this week, and negotiations would continue on substance over the weekend,” he added. But the EU also made it clear that it is prepared for a potential trade war with retaliatory tariffs on everything from Bourbon to Boeing 747s if Trump walks away before Wednesday.

On Thursday, the European Commission president, Ursula von der Leyen, emphasised that it would be too difficult to get a comprehensive deal in the time available.

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The regional bloc is seeking immediate relief from tariffs in key sectors as part of the framework, including the auto industry, which has to deal with a 27.5 per cent tariff, up from 2.5 per cent before Trump started his trade aggression. “What we are aiming at is an agreement in principle,” she said in Denmark. “That is also what the UK did.”