{"id":113939,"date":"2025-06-25T08:01:09","date_gmt":"2025-06-25T06:01:09","guid":{"rendered":"https:\/\/www.bioecoactual.com\/?p=113939"},"modified":"2025-06-25T18:00:39","modified_gmt":"2025-06-25T16:00:39","slug":"organics-in-looming-transatlantic-trade-war","status":"publish","type":"post","link":"https:\/\/www.bioecoactual.com\/en\/2025\/06\/25\/organics-in-looming-transatlantic-trade-war\/","title":{"rendered":"Organics in the looming transatlantic trade war"},"content":{"rendered":"

The U.S. \u2013 EU trade tensions have escalated significantly in 2025, with both sides imposing tariffs and countermeasures that have the potential of deeply impact the organic sector on both sides of the Atlantic.<\/p>\n

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Following the barrage of announcements, suspensions and exemptions by the Trump administration, EU products exported to the US are currently subject to the 10% \u2018universal\u2019 customs duty rate announced on the Liberation Day, which will escalate to 20% (or to 50% according to latest Trump\u2019s declaration) if no negotiated solution is agreed by the two blocs by July 9.<\/p>\n

The EU, meanwhile, has drawn up contingency plans in the form of lists of US products that are candidates for protectionist retaliatory measures, currently on hold until 14 July. The direct consequence is that US agri-food products currently imported under organic quality will be submitted to a 25% ad valorem tariff in the absence of a negotiated solution by July.<\/p>\n

The economic impact of the tariffs on organic products will depend on how the negotiations between US and EU are concluded and what the final\u00a0tariff burden will be. But they are part of President Trump\u2019s strategy to encourage domestic production so it is to be feared that the protectionist shift we have experienced so far in 2025 is here to stay in our forecast horizon.<\/p>\n

The diversification strategy will not work in the short term for EU organic products<\/p><\/blockquote>\n

The EU diversification strategy is not a way out for organic products<\/h2>\n

The global change in tariffs has redefined global supply chains, propelling the adoption of diversification strategy. The EU has intensified talks with alternative partners such as India, Mercosur, Indonesia or Australia to reduce Europe’s dependence on traditional markets and open up new export opportunities in strategic regions.<\/p>\n

But the diversification strategy will not work in the short term for EU organic products. Firstly, because no single market or group of markets can replace the US one, which alone accounts for half of global retail sales of organic products -the EU accounting for almost the other half-. Secondly, because organic equivalence agreements play a crucial role in helping organic companies to access export markets and only a handful of third countries have concluded this type of agreement with the EU.<\/p>\n

The trade war will eventually lead to burning bridges between strategic allies in the promotion of organics<\/h2>\n

The trade war has consequences that extend beyond economic issues. EU & US organic sectors built on complementary strengths, are closely intertwined and have a long history of cooperation. Mutual closure of markets through tariffs will inevitably entail burning bridges between like-minded, strategic allies in the promotion of organics worldwide.<\/p>\n

\u201cThe tariff war will only make losers<\/em>\u201d said Aurora Abad<\/strong>, Secretary General of OPTA Europe<\/a>. \u201cWhen it comes to organics, it is also interrupting the dynamics of an industry that is just at the beginning of its international expansion.\u201d<\/em><\/p>\n

OPTA Europe calls for constructive dialogue to find solutions that safeguard the long-standing and mutually beneficial transatlantic trade relationship<\/strong>. The collaboration between the two organic powerhouses is a necessary condition to make the world more organic.<\/p>\n

Author:\u00a0<\/strong>Aurora Abad, OPTA Secretary General<\/p>\n