US imposes record duties on $ 7,5 billion for European imports: how prices will change

Cheese, wine, olives and many other European goods will rise in price in the United States after President Donald Trump decided to fulfill his promise and introduce record duties on European imports worth 7,5 billion dollars.

Фото: Depositphotos

On Friday, October 18, the United States imposed a series of duties on European goods, writes DW. Washington announced countermeasures in response to subsidies for Airbus. He expects to recover losses in the amount of 7,5 billion dollars (6,7 billion euros).

The plan includes duties of 10% on Airbus and 25% on agricultural products such as French wine, Italian cheese and Scotch whiskey. The tariffs will take effect at midnight from Friday to Saturday.

French Economy Minister Bruno Le Marais criticized the move and said there would be “concrete” consequences if the promises were implemented.

“We Europeans will adopt similar sanctions in a few months, maybe even tougher, in the framework of the WTO - in response to these US sanctions,” he said in a radio interview earlier this week.

On the subject: US imposes duties on European imports: what will rise in price

Smack on Small Retailers

Such steps have been taken to punish the European Union. The WTO has reaffirmed the US argument that Airbus received billions of dollars in illegal subsidies, giving aircraft manufacturers an unfair advantage over Boeing’s US rival. Now, goods from countries manufacturing the Airbus aircraft - the UK, France, Germany and Spain - will be subject to higher duties than other EU countries.

The new tariffs will particularly affect European regional imports. Products with “protected name status,” such as Scotch whiskey and Parmesan cheese, require a specific production method and geographic origin to be sold under those names. Such products have a higher cost and are protected from competition. The new tariffs will give a boost to the production of “copycat” products in the United States.

European manufacturers believe that they are being unjustly persecuted in a political quarrel that has nothing to do with them. American retailers and importers of European specialized products also do not expect anything good.

Some more valuable goods for the US economy, such as automobiles, were largely excluded from coverage. Thus, Washington got the opportunity to exert pressure on the EU, while without prejudice to its state.

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

Global impact

Tensions in international trade have plagued the global economy in the last 12 months. China's economic growth has fallen to almost an 30-year low, as the world's second largest economy suffers from its own trade war with the United States.

At annual meetings on Friday and Saturday, WTO leaders and its subsidiary, the World Bank, will discuss ways to ease trade tensions, which contributed to a simultaneous slowdown in trade, affecting 90% of the world's population.

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