President Donald Trump has issued a threat to impose a 17% tariff on food imports from the European Union, escalating trade tensions between the two economies.
The warning comes as a July 9 deadline approaches for both sides to reach a new trade agreement.
If no deal is reached by that date, Trump has also warned that all EU goods entering the U.S. could be subject to a 50 percent tax.
EU officials described the proposed food tariff as a significant escalation in ongoing negotiations.
It remains unclear whether the proposed 17% tariff on food exports would be in addition to the potential 50 percent tariffs or would replace them.
Last year, the EU exported nearly $58 billion in food and farm products to the United States, including wine and specialty items, as the Daily Mail reported.
Failure to finalize an agreement may result in U.S. tariffs on a broad range of EU goods, which could prompt the European bloc to retaliate. EU countermeasures would likely target American exports such as food products and technology components.
The United States and European Union share one of the largest trade relationships globally, representing around 30 percent of international trade in goods. The