The European Union (EU) firmly refuses to compromise its food safety standards to appease American farmers or to sever its economic ties with China, as demanded by the United States (US).
This stance suggests that reaching a trade agreement between the EU and the US, following the imposition of tariffs by the Trump administration, will be exceptionally challenging. The EU maintains its food safety standards are non-negotiable.
The US reportedly wants the EU to eliminate restrictions on American agricultural products and significantly reduce its trade relationships with China to secure a new trade deal.
The EU acknowledges the possibility of concessions on less sensitive agricultural and food standards but rejects the US's demand for complete decoupling from China. The EU is prepared to implement retaliatory tariffs if necessary.
Both sides recognize the intricate nature of the transatlantic pharmaceutical supply chain and the potential disruption caused by tariffs. The US has initiated an investigation into pharmaceutical imports, potentially leading to further tariffs.