EU Agrees to Pursue Zero Tariffs on US Agricultural Products to Head Off Trump Duties
The EU Council approved a mandate for the European Commission to negotiate zero industrial tariffs and reduced agricultural tariffs with the United States. The move is a significant concession aimed at preventing the reimposition of Trump's reciprocal tariff rates when the current 90-day pause expires.
The European Union's Council approved a negotiating mandate allowing the European Commission to offer zero tariffs on US industrial goods and lower tariffs on US agricultural products in exchange for the United States withdrawing its threatened reciprocal duties. The US had initially imposed 20% tariffs on EU exports before pausing them to 10% for 90 days to allow for negotiations.
The EU had previously prepared counter-tariffs targeting roughly 21 billion dollars' worth of American exports, but held off applying them as talks continued. Key agricultural goods from the United States that could benefit from the EU concessions include soybeans, corn, and certain processed food products. The deal would represent a meaningful shift in market access for American grain and oilseed exporters into Europe.
Several EU member states, led by France, pushed back against the agricultural components of the proposal, arguing that eliminating tariffs on US farm goods would expose European producers to competition from cheaper, differently regulated American imports. The final agreement will require ratification and is subject to further negotiation; the time pressure comes from the pending expiry of the 90-day tariff pause.