EU Seeks Framework Deal to Avert Full-Scale Trade War

The European Union is actively seeking a high-level framework deal with the US to avert a full-scale trade war, following Donald Trump’s threat of a 17% tariff on European food and farm produce exports. This significant duty would impact popular items like Belgian chocolate, Irish butter, and Mediterranean olive oil, which are major sellers in the American market.
The warning was conveyed to EU trade commissioner Maroš Šefčovič during recent talks in Washington with US Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Commerce Secretary Howard Lutnick. This direct threat underscores Trump’s consistent and “aggressive negotiating position” against the EU.
While acknowledging the challenges, EU trade spokesperson Olof Gill affirmed that “progress was made towards an agreement in principle” and that negotiations would continue. However, the EU is also making robust preparations for a potential trade war, ready to impose retaliatory tariffs on various US products, including Bourbon and Boeing 747s, if a resolution isn’t reached before the Wednesday deadline.
European Commission President Ursula von der Leyen emphasized the pragmatic goal of a framework deal, similar to the UK’s approach, due to the limited time available for a comprehensive agreement. A key demand from the EU is immediate tariff relief in critical sectors, especially the auto industry, which currently faces a punitive 27.5% US tariff. The expiration of the 90-day tariff pause for over 60 countries, including the EU, on Wednesday, adds a critical sense of urgency to these ongoing trade discussions.