The ongoing trade tensions between the US and the European Union have reached a new level. According to three sources familiar with the matter, the Washington administration has threatened Brussels with a 17% tariff on EU agricultural exports. This development has further increased tensions in the ongoing trade negotiations between the two sides.
The latest warning from the US comes just before it launched a plan to impose 20% tariffs on all EU goods if the parties fail to reach a trade deal by July 9.
President Donald Trump is demanding that Brussels grant regulatory exemptions to U.S. companies and reduce the EU's trade surplus with the United States. The Trump administration has insisted it is determined to take tough action if no deal is reached.
European Commission Trade Commissioner Maroš Šefčovič received the warning himself during talks in Washington on Thursday, and the message was conveyed to the ambassadors of the 27 EU member states the next day.
European Commission President Ursula von der Leyen said on the same day that she hoped for an “agreement in principle” that would allow the parties to continue negotiations. However, the US is increasing pressure to reach a binding agreement by the deadline set by Trump.
*This is not investment advice.
