HomeBusinessThe 90-Day Tariff Pause Ends: New Threats for EU Trade

The 90-Day Tariff Pause Ends: New Threats for EU Trade

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The 90-day pause on Donald Trump’s “liberation tariffs” is set to end this Wednesday, ushering in new threats for EU trade, specifically a 17% tariff on European food and farm produce exports. This aggressive move targets popular European goods such as Belgian chocolate, Irish Kerrygold butter, and Mediterranean olive oil, which are major sellers in the US.

The warning was reportedly conveyed to EU trade commissioner Maroš Šefčovič during high-level talks in Washington with US Treasury Secretary Scott Bessent and other officials. This aligns with Trump’s consistent “aggressive negotiating position,” as he aims to extract concessions from trading partners.

Despite the looming deadline and threats, EU trade spokesperson Olof Gill confirmed that the bloc continues to “favour a negotiated solution” and that “progress was made towards an agreement in principle” in recent discussions. However, the EU is also making robust preparations for a potential trade war, with retaliatory duties on various US products, including Bourbon and Boeing 747s, if a deal isn’t reached before Wednesday.

European Commission President Ursula von der Leyen has emphasized the pragmatic goal of a high-level framework deal, acknowledging the limited time for a comprehensive agreement. The EU is also seeking immediate tariff relief for critical sectors, particularly the auto industry, which currently faces a punitive 27.5% US tariff. The convergence of the tariff pause expiration and the new food tariff threat creates an urgent environment for transatlantic trade discussions.

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