Mercosur: What France and Italy want to get for EU farmers
The European ministers of France and Italy have adopted a joint declaration on the Mercosur agreement. They are calling for more protection against market distortions for EU farmers.
Currently, there is a bit of calm in the US tariff spiral. US President Donald Trump announced a 90-day pause after his threat of 20% tariffs on EU goods in early April. However, the EU Commission is currently working on a tariff list for US products, especially agricultural products. EU negotiators want to exert pressure on the US.
Agriculture under pressure: How tariffs could affect agricultural prices in Europe
If negotiations were to fail, it could be critical for farmers. This is warned by the Agricultural Trade Association (DAH). A trade war between the EU and the US has the potential to massively disrupt international supply chains. Cost increases, especially in feed, may not be fully passed on to farmers and processors. This would endanger margins and economic stability.
Avoid escalations in the trade conflict with the US
The EU faces a balancing act. "On the one hand, it must act united and sovereign towards the US, but on the other hand, we must not lose sight of the economic reality - also in agricultural trade and the feed industry," says DAH Managing Director Martin Courbier. Therefore, he calls for a balanced approach between decisive action and prudence. The goal should be to find a negotiated solution that avoids further escalations and ensures the competitiveness of the European agricultural sector.
Surprise: No tariffs on soybeans
The European Commission has initiated a public consultation on a list of imports from the US that could be subject to EU countermeasures if the ongoing negotiations between the EU and the US do not lead to a mutually beneficial outcome and the abolition of US tariffs. Imports from the US worth €95 billion are currently affected. In addition to industrial products, agricultural products are also affected. Soybeans are likely not to be taxed as feed, possibly due to pressure from the oilseed industry. But other feedstuffs could be affected.
EU Commission announces countermeasures: Which agricultural products are affected?
So far, the following agricultural products are said to be affected: Soybeans, likely only seeds and not feed. Tariffs between 10 and 25 percent are planned, likely starting in December, Corn, tariffs of 10 to 25 percent, Poultry meat such as chicken and turkey, Frozen beef, Nuts such as almonds (likely starting in December), Dairy products, Eggs, Sugar, Vegetables. Details are still pending, Live ducks and turkeys.
Von der Leyen: "No compromise at any price"
The agricultural sector warns against EU tariffs on US agricultural products. In particular, the increase in key raw materials such as soybeans and corn would significantly increase the costs of feed production in Europe, and feed prices for livestock farmers would rise. If US products become less competitive due to tariffs, importers would have to increasingly switch to other countries of origin such as Brazil or Argentina. According to the DAH, this could jeopardize food security and increase dependence on individual export countries, posing additional risks. Commission President Ursula von der Leyen tries to reassure: "The EU remains firmly committed to achieving negotiation results with the US." However, her Trade Commissioner Maroš Šefčovič leaves no doubt: "But we will not accept any result at any price." Therefore, the Commission is also calling on the World Trade Organization to challenge the US tariffs, which it considers unjustified and clearly in violation of global trade rules. According to EU data, currently €379 billion of EU exports to the US, or 70% of EU exports since US President Donald Trump took office, are subject to new tariffs, including suspended tariffs.