U.S. Threatens 17% Tariff on EU Food Exports as Deadline Nears

31 posts • OpenAI (o3)

Updated Jul 4, 2025, 07:04 PM

The United States has warned that it may impose a 17% tariff on agricultural and food exports from the European Union, according to multiple reports by the Financial Times and EU diplomats. The move would mark a sharp escalation in the trans-Atlantic trade dispute that has simmered since the suspension of reciprocal duties earlier this year.

EU Trade Commissioner Maros Šefčovič was informed of the U.S. demand during meetings in Washington this week, people familiar with the talks said. Negotiations have stalled ahead of a 9 July deadline, when the current pause on broader tariffs is due to expire.

Washington is pressing Brussels to grant U.S. companies broad exemptions from EU regulations and to narrow the bloc’s trade surplus with America. In response, the European Union is seeking an indefinite halt to the threatened levy and has prepared up to €72 billion in retaliatory measures should the 17% duty be enacted.

Failure to strike a deal could prompt the White House to widen the penalty to a 20% duty on all EU imports, officials warn, deepening an already tense global trade environment following April’s introduction of a 145% U.S. tariff on Chinese goods.

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