US Exporters have a new headache to deal with in overseas markets, as the European Union is set to take action and implement a slate of new tariffs on American products. The products themselves will be wide-ranging, with a particular focus on agricultural products as those represent a large amount of US exports to the union.
The basis of the tariffs is a series of long-running disputes between the US and EU, which have been the subject of a number of earlier updates. The two sides both sued the other in the mid-2000s over a series of subsidies given to their primary airline manufacturers, Airbus and Boeing. Both sides have prevailed in their cases, with the US implementing tariffs last year.
The EU recently won their case with the WTO which allowed them to go ahead and implement new tariffs on US exports, and this week it was announced they intend to move forward with this plan. There is already majority support from the individual governments that make up the EU to pursue this.
The total amount of affected goods will be around $4 billion worth. The scale of the products is vast- it includes airplanes, the source of the conflict, but also plastics, chemicals, industrial goods, but largely is centered on agricultural products. These run the range as well, with fruits, juices, preparations, edible seeds, wine, liquor fish, and shellfish.
Exporters of products from the United States can expect to start seeing these tariffs hitting their products as soon as this week, with European importers now set to see price increases on products already on the water that have not been entered into their Customs territory.
These counter-lawsuits that originated in 2004 and 2006 have now led to considerable tariffs being imposed by both US and EU authorities, both sides attempting to target vulnerable sectors in the other’s economy. While tariff and trade policy is anticipated to undergo changes soon, for now, both sides have hit the other with duties that drive up prices for their consumers.
If you have any questions about how these tariffs affect your company and your ability to conduct international trade, please contact our SVP of Sales Andrew Galloway at (212) 220-7412, (973) 726-5340, or via email at firstname.lastname@example.org.