Ongoing trade tensions between the US and the European Union have reached new levels. According to three sources familiar with the issue, the Washington administration is threatening Brussels with a 17% tariff on EU agricultural exports. This development further raises tensions in ongoing trade negotiations between the two parties.
The latest warning from the US comes just before the party begins its plan to impose a 20% tariff on all EU goods if it fails to reach the trade agreement by July 9th.
President Donald Trump has called for Brussels to grant regulatory exemptions to US businesses and reduce EU trade surplus with the US. The Trump administration claimed it was determined to take tough actions if the deal was not reached.
European Commission’s Trade Commissioner Maloszhuchovich received a warning during consultations in Washington on Thursday, and the following day the message was passed to ambassadors of 27 EU member states.
European Commission President Ursula von der Leyen said on the same day that he wanted a “in principle an agreement” to allow parties to continue negotiations. But the US is increasing pressure to reach a binding agreement by the deadline set by Trump.
*This is not investment advice.
