The United States is planning to introduce a 17% tariff on agricultural imports from European Union countries. Brussels is exploring options for a compromise while simultaneously preparing symmetrical response measures, reports Baltimore Chronicle with reference to Financial Times.
According to three sources familiar with the negotiations, U.S. President Donald Trump has temporarily halted the introduction of an additional 10% “mirror” tariff on EU imports. This tariff was intended to be applied on top of the existing 10% base tariff imposed by the White House on April 9 for most countries worldwide. It remains unclear whether the new 17% duty on food products will be imposed in addition to previously announced tariffs or will replace them.
Washington is demanding significant concessions from the EU, including exemptions from certain regulatory requirements for American companies and a reduction in the EU’s trade surplus with the U.S. However, European officials have rejected these terms.
The current focus of the talks is on exemptions. One EU representative stated that Brussels is seeking to exclude specific goods such as aircraft parts and alcoholic beverages from the tariffs. The parties are working on a five-page draft of a “preliminary agreement”, but the document currently includes only a few agreed points.
On Thursday, July 3, European Commission President Ursula von der Leyen expressed hope for reaching a preliminary agreement that would allow negotiations to continue toward a final deal. At the same time, Washington insists on binding agreements by the July 9 deadline set by President Trump.
European Commissioner for Trade Maroš Šefčovič was officially informed of the potential introduction of 17% tariffs on agri-food products during meetings in Washington on Thursday. The next day, the information was shared with ambassadors of all 27 EU member states. Last year, EU exports of agricultural goods to the U.S.—including wine—amounted to €48 billion.
Šefčovič has repeatedly emphasized that changing EU regulations to accommodate U.S. demands is a “red line.” However, the EU is already on a path toward deregulation, particularly in environmental legislation.
EU member states remain divided over the issue. Some are willing to accept higher tariffs in exchange for predictability, while others push for a mirror response to increase pressure on Washington. German Chancellor Friedrich Merz has urged the European Commission to conclude an agreement as soon as possible. He aims to secure exemptions from sectoral U.S. tariffs of 25% on automobiles and 50% on steel.
According to two informed sources, several ambassadors at Friday’s closed meeting called for a stronger EU response to U.S. actions.
Preparations for such a response are already underway. The EU has approved the introduction of mirror tariffs on U.S. imports totaling €21 billion, effective from July 14. Additionally, the European Commission is developing a further package of countermeasures worth €95 billion, covering aviation products and food items.
According to an EU representative, Brussels has always prioritized a coordinated solution with the U.S., but it is simultaneously preparing for the possibility of no agreement being reached.
Two European diplomats reported that the U.S. has outlined three potential scenarios by July 9:
- For countries that reach a “preliminary agreement,” the current 10% tariff will remain in place, with potential for future reductions;
- For countries that fail to reach an agreement, tariffs will revert to April levels until a deal is made;
- For countries the U.S. deems as negotiating in bad faith, increased tariffs will be introduced.
On April 2, President Trump imposed tariffs on imports from over 180 countries, with rates ranging from 10% to 49%. Specifically, the U.S. imposed a 25% tariff on steel and aluminum from the EU. In response, the EU introduced its own import tariffs on U.S. goods totaling €21 billion.
However, on April 9, Trump suspended these tariffs for 90 days and set a temporary 10% rate on all foreign imports. During this period, the U.S. intends to sign individual trade agreements with other nations. In return, Brussels temporarily suspended its own 25% tariffs for three months and initiated negotiations with Washington.
Earlier we wrote that Trump signs ‘Big Beautiful Law’ on taxes and spending cuts.