Due to duties on European imports in the United States, food prices will rise sharply
New duties on European goods, which should come into force at the end of this month, may mean that your bill for food or food in restaurants may increase sharply - especially as the holiday season approaches.
It all started as a dispute about international trade over subsidies in the aviation industry, but it led to the fact that the World Trade Organization “awarded” the United States the opportunity to establish duties on goods from the European Union in the amount of 7,5 billion dollars, writes ABC News.
Although some of these duties are for aircraft, most of them are for agricultural products, mainly from France, Germany, Spain and the UK.
The duty of 25% will apply to products such as German coffee, Scotch whiskey, British cookies, Spanish olives, Italian cheeses, French wines and many others - among the many tariffs for goods from the EU that are due to take effect on October 18.
US food accounts "will grow significantly, at least by 25-40%, depending on the retailer," Phil Kafarakis, president of the Specialized Food Association, told ABC News on Monday. The costs in this case are likely to be borne directly by consumers, since manufacturers have been notified too shortly before the duties begin.
“These duties will be introduced at the same time as two weeks notice, for the supply chain it is a very short period of time, so we believe that they will be transferred to consumers,” he said. “It’s sad that all this will happen on the eve of the holidays.”
On the subject: US imposes duties on European imports: what will rise in price
According to Kafarakis, it will be even more difficult for restaurants, where it is not always possible to quickly change the assortment the way a grocery store does.
“You will see an immediate increase in prices over a wide range,” the expert says, adding that all this will affect most everyday consumers. “We are involved in a political game, and food is used as a weapon.”
Overseas, many food exporters are also trying to come to terms with the news.
Karen Betts, executive director of the Scottish Whiskey Association, called the 25 percent duty “a blow” to her industry, saying that single malt Scotch whiskey accounts for “more than half of the total cost of British products on the US government tariff list (i.e. more than 460 million dollars) ".
“Over the past 25 years, the trade in alcoholic beverages between Europe and the United States has been duty free. During this time, the export of Scotch whiskey to the United States and American whiskey to the UK and Europe has grown significantly, which has benefited both sides of the Atlantic, increasing investment, employment and prosperity for everyone, ”said Betts.
Antoine Leccia, president of the French Wine and Spirits Exporters Association (FEVS), lamented the announcement of duties, noting that they “would have a major impact on French wine producers and exporters, as well as our customers and consumers in the United States,” and “ no good news for anyone. ”
In Ireland, where Kerrygold butter comes from, the head of the Irish Farmers Dairy Association, Tom Phelan, noted that this brand is now the second-most-selling butter brand in the US, and other exporters have also entered the market.
“These duties can reduce margins or market share, or both,” said Phelan, urging the EU and the Irish government to “make every effort to agree on a return to normal trade flows.”
Kafarakis said that there is no need to wait for the end of the story with duties. According to him, the new tariffs will not only “reduce family retail purchases,” but will also damage “small enterprises and entrepreneurs, especially in the food industry.”
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