The trade war is about to intensify.
Only this time, it’s happening with the European Union.
While we wait for signs of cooling trade war tensions at the U.S. China meeting next week, the U.S. is imposing tariffs on EU goods. In fact, according to the Office of the U.S. Trade Representative, duties will take effect on October 18, 2019.
That will include the following:
· 10% tariffs on aircraft from France, Germany, Spain, and the U.K.
· 25% tariffs on single-malt Irish and Scotch whiskey, and garments
· 25% tariffs on coffee and tools and machinery from Germany
· 25% tariffs on cheese, olive oil, and meat
· 25% tariffs on some pork products, butter, and yogurt
All of this comes after the World Trade Organization gave the Trump Administration permission to put tariffs of $7.5 billion worth of EU goods. U.S. officials also say the EU has “no basis” to retaliate against the planned duties, as highlighted by CNBC.
U.S. Airlines Are Not Pleased by the Move
In fact, according to Delta, “Imposing tariffs on aircraft that U.S. companies have already committed to will inflict serious harm on U.S. airlines, the millions of Americans they employ and the traveling public.” It will also reduce Delta’s profits.
JetBlue also noted that it’s concerned about the impact tariffs will have on the ability “for low-cost carriers like JetBlue to grow and compete.”
President Trump is also threatening duties on cars and auto imports from Europe – which were delayed in May 2019 for a period of six months. At the time, Trump argued, “domestic conditions of competition must be improved by reducing imports.”
It’ll be interesting to see if the EU trade war will be as intense as the one with China.