Due to duties on European imports in the United States, food prices will rise sharply

New tariffs on European goods due to take effect later this month could mean your grocery or restaurant bill could skyrocket - especially as the holiday season approaches.

Фото: Depositphotos

It began as an international trade dispute over airline subsidies but led to the World Trade Organization “awarding” the US the ability to impose tariffs on $7,5 billion worth of European Union goods, 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 25% tariff will affect products such as German coffee, Scotch whisky, British biscuits, Spanish olives, Italian cheeses, French wines and many others - among a slew of tariffs on EU goods due to come into force on October 18.

American grocery bills are "going to increase significantly, at least 25% to 40%, depending on the retailer," Phil Kafarakis, president of the Specialty Food Association, told ABC News on Monday. The costs would likely fall directly on consumers because producers were given too little notice before the tariffs took effect.

“These tariffs will be introduced at the same time as two weeks' notice, which is a very short period of time for a supply chain, so we believe they will be passed on to consumers,” he said. “It’s sad that all of this is going to happen around 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 immediate price increases across a wide range,” the expert says, adding that most everyday consumers will be impacted by all of this. “We are involved in a political game, and food is being used as a weapon.”

Overseas, many food exporters are also trying to come to terms with the news.

Karen Betts, chief executive of the Scottish Whiskey Association, called the 25% tariff a "blow" to her industry, saying single malt Scotch whiskey represented "more than half the total value of British products on the US government's tariff list (more than $460 million) "

“For the past 25 years, trade in alcoholic beverages between Europe and the United States has been duty-free. During this time, exports of Scotch whiskey to the US and American whiskey to the UK and Europe have grown significantly, delivering benefits on both sides of the Atlantic, increasing investment, employment and prosperity for all,” Betts said.

Antoine Lecchia, president of the French Association of Wine and Spirits Exporters (FEVS), lamented the announcement of the tariffs, noting that they "will have a serious impact on French wine producers and exporters, as well as on our clients and consumers in the United States" and that " This is not good news for anyone.”

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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 tariffs could reduce margins or market share, or both,” Phelan said, calling on the EU and Irish government to “make every effort to agree on a return to normal trade flows.”

Kafarakis said that the tariff saga cannot be expected to end soon. He said the new tariffs would not only “reduce household retail purchases” but would also harm “small businesses and entrepreneurs, especially in the food industry.”

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