US tariffs hit European imports

The US has long been in conflict with the European Union (EU) over various trade issues. One of the main reasons behind such trade issues is the tariffs EU goods such as steel and aluminum face when coming into the US. There has also been a 15-year dispute between the two economic areas over subsidies to Airbus and Boeing, which have resulted in roughly $7.5 billion in tariffs on European products, as well as significant reductions in US interest in EU goods. 

While some trade issues have been resolved when the US agreed to cut import taxes on $160 million worth of EU goods and the EU agreed to abolish tax on US lobster, the conflict between the two is still ongoing. In fact, America’s top trade official has recently announced new plans to raise prices on several European goods, specifically targeting European distillers with its latest tariff increase.

Targeting European Distillers

British gin and German beer are some of the goods that the planned tariffs will impact. Experts are concerned that this will negatively affect European businesses since the increased cost of exporting to the US will make their products less competitive to US brands. Thus, higher prices could result in reduced interest in European brands and have a significant impact on the European distilling industry.

Despite its adverse consequences, the plan to increase import taxes on such products is a strategic move by the US to settle the dispute over subsidies to Airbus and Boeing. However, this has been deemed unfair by many, who believe that the tariffs will impact unrelated sectors and not just European businesses. For example, US importers of European wine and spirits may also take a hit from this planned hike in tariffs. Furthermore, it should be noted that a huge percentage of US jobs are within the hospitality industry. At a time when the coronavirus pandemic has caused major job losses in just about every industry, the US government is being criticized for the extra damage it will cause to its industries and workers. The government must listen to the worries of its citizens and work out another solution that can benefit more people.

Get Help From Export Portal

Export Portal is dedicated to facilitating international trade by supporting businesses so that they can grow while overcoming challenges and difficulties. Our articles are focused on equipping business owners with the knowledge they need to drive their businesses to success. To learn more about us, make sure to check out our site!