US Threatens 17% Tariffs on EU Agricultural Exports Due to Trade Conflict

The United States of America has announced the possibility of imposing 17% tariffs on agricultural exports from the European Union. This move is a response to the escalation of trade disputes with Brussels ahead of the deadline set for July 9 for reaching a new trade agreement between the two parties.

This is reported by AgroReview

Escalation of Negotiations and EU’s Position

European officials note that the US decision to impose increased tariffs was unexpected and has intensified the transatlantic dialogue. According to participants in the negotiations, Brussels had hoped until the last moment to maintain the existing tariffs unchanged. It is currently unclear whether the 17% levy will be in addition to the existing tariffs or will replace them.

The parties continue to work on a five-page draft “principled agreement,” but so far the text of the document contains a minimal number of agreed points. The EU is trying to secure exemptions for specific categories of goods, including aircraft parts and alcoholic beverages.

Internal Discussion in the EU and US Scenarios

The issue of tariff increases has sparked sharp discussions among EU member states. Some are willing to agree to a certain increase in tariffs in exchange for guarantees of stability, while others insist on symmetrical measures in response to pressure Washington to reach a compromise.

According to diplomats, the US has proposed three possible scenarios for developments by July 9. For countries that reach a “principled agreement,” 10% tariffs will apply with the possibility of further easing. For those who do not reach such a compromise, tariffs will revert to the levels announced in April until an agreement is signed. The highest tariffs are expected for countries that the US believes are not negotiating in good faith.

Ursula von der Leyen, President of the European Commission, expressed hope for reaching a principled agreement that would allow the parties to continue negotiations until a final resolution is achieved. EU Trade Commissioner Maroš Šefčovič was officially informed about the possible introduction of 17% tariffs during meetings in Washington, after which the information was conveyed to the 27 ambassadors of EU member states.

“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.”

In addition to tariff policy, the EU is also preparing for possible easing of certain environmental standards, seeking to adapt to new conditions of cooperation with the US. Negotiations are ongoing, and the parties are looking for a mutually acceptable solution to avoid a full-scale trade war.