EU says it ‘favours a negotiated solution’ but is prepared for potential trade war with retaliatory duties

Donald Trump threatened to impose 17% tariffs on food and farm produce exports from Europe during talks in Washington this week, it has emerged.

Such tariffs would hit everything from Belgian chocolate to Kerrygold butter from Ireland and olive oil from Italy, Spain and France, all big sellers in the US.

Diplomats and officials say bloc willing to accept 10% tariffs, but talks may go down to wire before Wednesday deadline

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The EU and US are closing in on a high-level “framework” trade deal that will avert 50% tariffs being imposed on all exports from the bloc next Wednesday, Donald Trump’s self-imposed deadline.

Talks in Washington could go down to the wire, but multiple diplomats and officials said the EU was now willing to accept Trump’s 10% blanket tariffs. However, negotiators will accept this only in exchange for an extension in talks and possible concessions on a 25% car tariff, which is hurting the German car industry, sources said.

Makers of Aston Martins and Range Rovers expect high demand but British farmers say they have been used as collateral

Shiploads of Minis, Aston Martins and Range Rovers will set sail for the US on Monday as the UK-US trade deal kicks in, but British farmers say they have been used as collateral to save the car industry.

Auto shipments across the Atlantic were down more than half in May after Donald Trump’s imposition of a 25% tariff on 3 April on top of an existing 2.5% levy.