The summer trade deal between the European Union and the Trump administration was supposed to mark a turning point in transatlantic relations after months of uncertainty. A 15% tariff cap wasn't ideal, but EU leaders accepted it as the cost of keeping trade tensions with the United States at bay. That is, until U.S. President Donald Trump reignited the dispute.
He is now threatening fresh tariffs in retaliation for EU regulations and market rules.
Western Growers, representing farmers who produce half of America's fresh fruits, vegetables, and nuts, views the renewed trade conflict as a direct risk to their sector. "Every grower I know is trying to figure out how to do more with less: less water, less land, fewer inputs," said Walt Duflock, senior vice president of innovation at Western Growers. "Technology exists to solve these challenges, but adoption has been slow and fragmented. This coordinated approach changes everything."
Analysts warn that tariffs on agricultural products could again put European and American growers at odds. The EU has previously prepared retaliatory tariffs of 25% on U.S. exports, though these were not implemented.
The renewed threat raises questions about how much leverage the EU has, given its reliance on U.S. markets for certain produce categories and the need to balance trade pressures with domestic supply.
Source: DW