Trump’s Tariff Gambit: How Europe Plans to Respond

Donald Trump’s latest tariff gambit, threatening a 17% duty on European food and farm produce exports, has prompted Europe to consider its comprehensive response. The proposed tariff targets popular European goods such as Belgian chocolate, Irish Kerrygold butter, and olive oil from Italy, Spain, and France, which are major sellers in the US.
The warning was reportedly conveyed to EU trade commissioner Maroš Šefčovič during talks in Washington with US Treasury Secretary Scott Bessent and other key officials. This aggressive move aligns with Trump’s history of assertive trade negotiations, where he aims to secure significant concessions from trading partners.
While the European Union’s trade spokesperson, Olof Gill, reiterated the bloc’s commitment to finding a “negotiated solution” and noted “progress was made towards an agreement in principle,” the EU is also making robust preparations for a potential trade war. Brussels has signaled its readiness to impose retaliatory tariffs on a wide array of US goods, including Bourbon and Boeing 747s, should Trump proceed with his proposed duties before the Wednesday deadline.
European Commission President Ursula von der Leyen has advocated for a 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 currently grapples with a substantial 27.5% US tariff. The expiration of the 90-day tariff pause for dozens of countries, including the EU, on Wednesday, intensifies the pressure on these crucial trade negotiations.