In what can only be considered additional blows to the United States consumer, the Trump administration has now added tariffs to some products coming from the European Union. Cheese, olive oil, scotch, wine, and coffee have all been targeted by the government.
The World Trade Organization has authorized the Trump administration to impose duties on the EU after deciding that the EU failed to completely end illegal loan subsidy programs for Airbus. The EU argues it has taken meaningful steps to comply and expects the WTO to validate that in a separate ruling, according to a report by Politico. However, Trump already has tariffs plans for $7.5 billion worth of European aircraft, agricultural and industrial goods that will go into effect later this month.
“For years, Europe has been providing massive subsidies to Airbus that have seriously injured the U.S. aerospace industry and our workers,” U.S. Trade Representative Robert Lighthizer said in a statement. “We expect to enter into negotiations with the European Union aimed at resolving this issue in a way that will benefit American workers.”
“It was a big win for the United States,” Trump said during a joint press conference with Finnish President Sauli Niinistö, who was in Washington for bilateral talks. Other countries still believe Trump is violating international trade rules. Under the new ruling, the Trump administration can now impose tariffs up to 100%.
The decision is the highest penalty ever granted by a WTO arbitrator. American officials said the United States would use the authority to impose a 10 percent tariff on Airbus aircraft and a 25 percent duty on various European agricultural and industrial goods effective October 18. –Politico
The EU plans to retaliate hitting dairy farmers the hardest. Cheese and other dairy products will likely be the target of retaliatory tariffs on U.S. goods.
Reacting to the announcement, Airbus CEO Guillaume Faury said U.S. tariffs “would have a negative impact on not only the U.S. airlines but also U.S. jobs, suppliers, and air travelers.”
For its part, the mainstream media doesn’t seem nearly as concerned about the effects of these tariffs as they were over those placed on Chinese goods. But tariffs are still a tax, and still force the cost of goods higher, meaning the American consumer is about to take one more hit.