New tariffs on EU food will boost prices, cost U.S. jobs: industry

[webfact]

New tariffs on EU food will boost prices, cost U.S. jobs: industry

By David Shepardson

 

FILE PHOTO: Bottles of French red wine are displayed at the Chateau du Pavillon in Sainte-Croix-Du-Mont, France, July 29, 2019. REUTERS/Regis Duvignau/File Photo

 

WASHINGTON (Reuters) - New 25% U.S. tariffs on Italian cheese, French wine, Scotch whisky, British biscuits, Spanish olives and thousands of other European food products will lead to higher prices ahead of the holiday season and cost American jobs, trade groups said on Thursday.

 

The U.S. Trade Representative's Office said on Wednesday it was imposing tariffs on hundreds of European products after the World Trade Organization gave the green light to the action in response to EU subsidies on large aircraft.

 

The Specialty Food Association said in a statement the tariffs would decrease sales and adversely impact U.S employment at 14,000 specialty food retailers and 20,000 other food retailers across the United States. The impact would be "dramatic," the trade group said.

 

Higher prices "will hit Americans in the wallet just as the holiday season is approaching," the group said. "The cheese/charcuterie board that currently cost you $45 will put you back $60 after tariffs. The treats you provide your family to celebrate Thanksgiving and the year-end holidays may become out of reach."

 

Single-malt whisky represented over half of the total value of British products on the U.S. tariff list, amounting to over $460 million, according to the Scotch Whisky Association.

 

Shares in European luxury goods, including British fashion brand Burberry Group Plc <BRBY.L>, and drinks companies, such as France’s Remy Cointreau SA <RCOP.PA>, rose on Thursday, after the tariffs excluded cognac, Champagne and leather goods.

 

This week's tariffs on Scotch whisky, liqueurs and cordials, and wine could affect nearly $3.4 billion in imports "and could lead to a loss of approximately 13,000 U.S. jobs, including truckers, farmers, and bartenders and servers in the hospitality industry," the Distilled Spirits Council said.

 

José Andrés, a Spanish-born Michelin-starred chef who has helped provide millions of meals in areas hit by natural disasters and owns more than a dozen U.S. restaurants, criticized the tariffs on Twitter on Thursday, saying it "will affect not only rural economies in Europe, but thousands of small American businesses all over!"

 

He urged U.S. President Donald Trump to reconsider: "You are a Deal Maker? A businessman! If you can negotiate with enemies, do it with allies first."In June 2018, the EU imposed 25% tariffs on American whiskey in response to U.S. steel and aluminum tariffs. The EU is now considering more tariffs on additional U.S. spirits and U.S. wine as part of a separate WTO civil aviation investigation.

 

Since the new EU tariffs, American whiskey exports have declined 21 percent.

 

(Reporting by David Shepardson; Editing by Peter Cooney)

 

 

-- © Copyright Reuters 2019-10-04

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[Matzzon]

Dumb, Dumber, Trump

[RichardColeman]

Another good reason to get Brexit done !

[JonnyF]

It's a good job the EU is on the verge of securing an ambitious trade deal to protect the 70 Billion pound annual trade surplus they have with the UK.

 

Oh, wait a minute...

[the guest]

Don't worry EU will introduce reciprocal tariffs. 

[pegman]

1 hour ago, RichardColeman said:

Another good reason to get Brexit done !

So the UK won't be building Airbus planes after Brexit?

[DoctorG]

This article is written as if there were no alternate products manufactured in USA. If you cannot live without your favourite European product then you will pay a little more for it. 

[grumbleweed]

6 hours ago, webfact said:

Higher prices "will hit Americans in the wallet just as the holiday season is approaching,"

Smart guy that Donald, Pity he isn't on the side of the American people.

[edwinchester]

Thankfully trade wars are good and easy to win.

[PaulDee]

Wait a minute. Didn't Trump say his higher tariffs would be paid by China? ????

[Benmart]

5 hours ago, Matzzon said:

Dumb, Dumber, Trump

Please share you knowledge of international trade negotiations, WTO rules and/or your past Presidential experience, or the equivalent. I admit my lack of relevant knowledge and suspect that those who post such one-liners, do not have the ability to express themselves with any degree of credibility.

[Gifford]

1 hour ago, grumbleweed said:

Smart guy that Donald, Pity he isn't on the side of the American people.

You have no idea

[Gifford]

If the EU traded fairly they wouldn't be getting tariffs. Play by the rules or get burnt. Same goes for china and it's artificially devalued currency.

Regarding the headline, what a load of <deleted>. We'll see who comes out on top of this.

I'm not from the US BTW before you go calling me a 'yank'.

[Matzzon]

18 minutes ago, Benmart said:

Please share you knowledge of international trade negotiations, WTO rules and/or your past Presidential experience, or the equivalent. I admit my lack of relevant knowledge and suspect that those who post such one-liners, do not have the ability to express themselves with any degree of credibility.

The only thing you need to know is that dear Mr. Trump do not negotiate with anybody or any country if they not dance after his rules. It´s just a business man that had help with everything he succeeded with in life. Now he is choosen by other dumb nuts to take care of a superpower. That makes him think that he can rule the world, tell everybody what do do and how to do it, otherwise he put sanctions on products from different places.

In my opinion Mr. Trump is a clown in far too big shoes. As for all your questions, why don´t you just Google it?

[Chomper Higgot]

More tariffs for US consumers to pay.

[loong]

10 hours ago, webfact said:

The cheese/charcuterie board that currently cost you $45 will put you back $60 after tariffs.

How does a 25% tariff lead to a 33% increase to the consumer?

The report doesn't mention if this is a new tariff or if there was already a tariff in place.

If there was already a tariff of say 10%, that would make the price increase even more ludicrous.

[HappyinNE]

3 hours ago, Chomper Higgot said:

More tariffs for US consumers to pay.

Or not pay and purchase US products.  That is the effect of many tariffs.

[soalbundy]

9 hours ago, RichardColeman said:

Another good reason to get Brexit done !

because you can trust Trump to be nice to the UK ?

[soalbundy]

2 minutes ago, HappyinNE said:

Or not pay and purchase US products.  That is the effect of many tariffs.

I didn't think America did quality food let alone Scotch whiskey

[bristolboy]

4 hours ago, Benmart said:

Please share you knowledge of international trade negotiations, WTO rules and/or your past Presidential experience, or the equivalent. I admit my lack of relevant knowledge and suspect that those who post such one-liners, do not have the ability to express themselves with any degree of credibility.

With Trump trade war a threat, Fed is set to cut rates again

 For a second straight time, the Federal Reserve is set to cut interest rates this week to try to protect the economy from the consequences of a global slowdown and President Donald Trump’s trade war with China.

https://www.apnews.com/38bd60d6f2f64f8daeb273b2042d03a8

 

Over 90% of business economists say Trump tariffs will harm US: Survey

 

 - Business economists overwhelmingly worry President Donald Trump's trade wars will harm the US economy, according to a survey released on Monday (Aug 20).

The Trump administration on Thursday is due to impose its latest round of punitive tariffs on China, putting 25 per cent duties on another US$16 billion in imports, with Beijing poised to retaliate dollar-for-dollar.

https://www.straitstimes.com/business/economy/over-90-of-business-economists-say-trump-tariffs-will-harm-us-survey

[tomazbodner]

4 hours ago, Gifford said:

If the EU traded fairly they wouldn't be getting tariffs. Play by the rules or get burnt. Same goes for china and it's artificially devalued currency.

Regarding the headline, what a load of <deleted>. We'll see who comes out on top of this.

I'm not from the US BTW before you go calling me a 'yank'.

It is hardly a fair play when one country has control over entire global payment systems and can declare sanctions or accuse any other country for anything it doesn't like, and use tools only itself possesses to exclude that country from the global trade.

It is also hardly fair play when one country can print paper at will without much if any connection to its actual value, while all the other currencies are based on their countries' actual economic performance.

It isn't terribly likely that US would come out on top. It is quite likely though that the spats won't only be trading wars. Sooner or later someone will pull a trigger.

[bristolboy]

6 hours ago, Gifford said:

If the EU traded fairly they wouldn't be getting tariffs. Play by the rules or get burnt. Same goes for china and it's artificially devalued currency.

Regarding the headline, what a load of <deleted>. We'll see who comes out on top of this.

I'm not from the US BTW before you go calling me a 'yank'.

And soon you'll be able to say that about the USA, too. What you clearly don't know is that the WTO has already decided that the USA gave illicit subsidies to Boeing. And sometime early next year will decide on the amount of punitive tariffs the EU can impose on US goods.

WTO rules against US and Boeing in mammoth trade row with EU

https://www.dw.com/en/wto-rules-against-us-and-boeing-in-mammoth-trade-row-with-eu/a-48105904

[StreetCowboy]

3 hours ago, soalbundy said:

I didn't think America did quality food let alone Scotch whiskey

no-one does scotch whiskey

[White Christmas13]

12 hours ago, pegman said:

So the UK won't be building Airbus planes after Brexit?

Since when are they build in the UK?

 

Is Airbus French?

It is owned by EADS, a European aerospace company. Airbus has its headquarters in Blagnac, France. ... The final part of Airbus aircraft making is done in Toulouse, France; Hamburg, Germany; Seville, Spain; and, since 2009, Tianjin, China. Airbus makes and sells the first digital fly-by-wire airliner, the Airbus A320.

[White Christmas13]

Only the engines are made in England

[Basil B]

12 hours ago, DoctorG said:

This article is written as if there were no alternate products manufactured in USA. If you cannot live without your favourite European product then you will pay a little more for it. 

They won't go hungry, they have tons of chlorinated chicken.

[candide]

2 hours ago, White Christmas13 said:

Only the engines are made in England

And wings

[Basil B]

2 hours ago, White Christmas13 said:

Only the engines are made in England

Many parts are made in the UK including the wings for the A380.

[fruitman]

15 hours ago, the guest said:

Don't worry EU will introduce reciprocal tariffs. 

Owww noooooo....Ford is already the cheapest and crappiest car one can buy, if they put 25% on it the Europeans will all go for a Toyota made in Thailand...

[loong]

10 hours ago, StreetCowboy said:

no-one does scotch whiskey

No, the Scottish spell it whisky, no e.