EU-US Tariff Deal Sounds the Alarm for Agri-Food Workers

At the time of writing, there are still many uncertainties concerning the deal with several aspects still to be negotiated. Since the announcement, the European Commission and the White House have already made contradictory claims about the content and scope of preliminary agreement.  Despite the confusion surrounding the deal, the core elements are clear. The deal would set an overall 15% baseline tariff for EU products exported to the US with the exclusion of some goods that would suffer higher tariffs (e.g. steel) and others with lower or no tariffs (e.g. aviation exports and chip equipment). For agricultural products, the 15% baseline tariff would apply. However, certain agricultural products may benefit of lower tariff barriers, or from zero-for-zero tariffs, depending on the outcome of future negotiations.

The European Federation of Food, Agriculture and Tourism Trade Unions (EFFAT) expresses deep concern about the proposed 15% baseline tariff, which is only 5% lower than the 20% initially threatened on Trump’s “Liberation Day”.

Speaking on the agreement, Enrico Somaglia, EFFAT General Secretary warned:

“While detailed information on the agri-food sector is still lacking, it is becoming increasingly clear that many products will be subject to the 15% baseline tariff. On top of this, we must consider the 13%-dollar devaluation against the euro since the start of 2025, as well as the reality that European companies are already paying significantly more for energy than their U.S. competitors. Meanwhile, it appears the EU has lowered its tariffs on U.S. imports.

These figures are a harbinger of challenging times across the agri-food sectors — the costs of this new reality will ultimately be paid for by workers, many businesses across Europe, as well as consumers in the United States. The European Commission claims the agreement was made in the interest of stability and predictability. Yet, there were certainly other ways to respond to the Trump administration’s authoritarian approach to international relations. This deal leaves us with great uncertainty and concerns.”

Commenting on President von der Leyen’s pledges to invest $600 billion in the U.S. and purchase $750 billion worth of U.S. oil and gas over the next three years, Somaglia added:

“A significant portion of these investments will be directed toward the U.S. military and fossil fuel industries. At a time when the EU urgently needs to invest in its economy and strategic sectors, including EFFAT sectors, the European Commission is showing weakness and missing a critical opportunity to develop a stronger, sustainable, and more integrated Europe. Meanwhile, European workers are left with worsening labour and environmental protections, and a draft EU long-term budget that fails to deliver for them, siphoning money away from key programmes like the CAP”.

Food, drink, and tobacco product exports to the US account for 5% of total exports, amounting to over €25 billion each year, including wine, cheese, chocolate, olive oil, and spirits. In return, the EU imports key commodities such as nuts, soybeans, beef, animal feed and wheat from the US. This deeply intertwined trade relationship sustains hundreds of thousands of jobs, many of which are in small businesses and rural communities.

EFFAT’s urgent demands to the EU

EFFAT reiterates its demands to EU institutions and member states, calling for them to immediately engage with social partners and take action to:

1️⃣ Protect agri-food workers by saving jobs potentially affected, implementing financial support and employment protection measures, inspired by the SURE initiative used during the pandemic.

2️⃣ Develop targeted support programmes for the regions and sectors most impacted by US tariffs, with strict social conditionalities attached.

3️⃣ Strengthen collective bargaining to prevent downward pressure on wages and working conditions, thereby stimulating EU internal demand and offsetting future tariffs’ impacts.

4️⃣ Regulate food markets by implementing safeguards against food speculation and extreme price volatility that could disrupt production and supply chains.

The EU must act now to protect European agri-food workers, safeguard jobs, and defend fair trade. While EFFAT will assess the complete impact of this deal on its sectors, we stand ready to work with the Commission and all stakeholders, doing our utmost to ensure working people do not pay the price of the new global dynamics and the ongoing instability.