Trump’s Tariff Letters: A Global Trade Shake-Up on Horizon

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Donald Trump’s threat of a 17% tariff on European food and farm produce exports is part of a larger global trade shake-up, as he prepares to send letters to a dozen countries announcing permanent tariffs of up to 70%. This aggressive strategy, with Europe’s beloved food items like Belgian chocolate and Irish butter in the immediate crosshairs, signals a major shift in international trade relations.

The specific warning for European food tariffs was reportedly delivered to EU trade commissioner Maroš Šefčovič during talks in Washington with US Treasury Secretary Scott Bessent and other officials. This reinforces Trump’s consistent “aggressive negotiating position,” aiming to extract a high price from trading partners.

Despite the broad-ranging 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 impending global tariff deadline and the immediate threat to European food exports are setting the stage for significant international economic shifts.

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