Tariffs on EU Products Disappoint Many US Businesses

Trade groups representing importers, retailers and producers largely reacted with dismay to the news that the U.S. would collect 25 percent tariffs on billions of dollars' worth of European goods, as an inducement for the European Union to stop subsidizing Airbus aircraft launches.

If the retaliatory tariffs on American whiskey wasn't bad enough, the Distilled Spirits Council said, now 25 percent tariffs on European liquors and wines will hurt U.S. distributors, bartenders and, perhaps winemakers once the European Union gets permission to levy tariffs from the World Trade Organization over Boeing subsidies.

"Since the EU’s 25 percent retaliatory tariff on American Whiskey was imposed last year, exports have declined 21 percent," the distillers said.

The Specialty Food Association sent out a statement that said they were "deeply disappointed" that European foods make up a substantial part of the list, especially given that European cheeses, olives and pork have nothing to do with aircraft, the industry the Europeans and Americans have litigated about for 15 years.

"The Specialty Food Association’s position is that all specialty food products should be excluded from the tariff list -- especially given the purely industrial nature of this long-standing dispute," said the association, which represents 14,000 specialty food retailers. "The increased costs to consumers on imported foods will be dramatic," the group said. "The cheese/charcuterie board that currently cost you $45 will put you back $60 after tariffs."

However, the newly formed American Italian Food Coalition praised the list's restraint. While Italian cheeses were included, pasta, olive oil, and Italian coffee was not.

Lou Barletta, chairman of American Italian Food Coalition said in a statement, "This is a proportional and appropriate response from USTR. I had faith that President Trump would be fair, and he’s done the right thing. I’m pleased that so many uniquely Italian products were not hit with American retaliatory tariffs.”

Dairy groups also split on the tariffs. The International Dairy Foods Association said, "IDFA supports the United States’ right to retaliate against the EU’s illegal subsidies. However, IDFA remains of the view that establishing a comprehensive trade agreement between the U.S. and EU would be the best solution for U.S. agriculture and the dairy industry."

The National Milk Producers Federation cheered the inclusion of cheese, yogurt and butter. “The retaliatory tariffs announced today are a clarion call for fair trade and an indication that trade must be a two-way trade," NMPF said. “What better way to reduce the U.S. trade deficit with Europe than by selling them award-winning US cheeses?” The group blames its poor sales in Europe on the fact that American Pecorino, Romano, Parmesan, feta and other cheeses cannot be sold in Europe under those names.

The Associated Press reported that French winemakers said the tariffs would increase prices by $5 to $6 a bottle. It also quoted European Commission spokesman Daniel Rosario's Oct. 3 comment that “this is a move that will first and foremost hit U.S. consumers and companies and will make efforts towards a negotiated settlement more complicated.”