Here’s what you need to know about the Trump administration’s proposed EU tariff hike:
-In October 2019, the Trump administration imposed a 25% tax on EU imported goods, including textiles, cosmetics, spirits, wine, and cheese.
-This tax hike is in response to a long-running dispute over EU subsidies for Europe-based Airbus, which affect American aircraft manufacturers.
-Many beloved European products, including Parmigiano Reggiano, Provolone, and Moliterno al Tartufo, are affected; these cheeses generate up to $3.5 billion annual revenue and support at least 20,000 jobs across the US.
-Retailers have begun stockpiling millions of dollars worth of affected products, but expect to run out long before year’s end.
-Some higher-priced items are expected to disappear from US shelves altogether, as the retail value rises and fails to offset the wholesale cost.
-The US is now threatening a 100% tax hike on imported EU goods in retaliation to France’s proposed digital services tax, which seeks to level the playing field for non-US based internet companies.
The good(ish) news:
-France is prepared to fight the proposed 100% tariff hike on behalf of their makers, if it comes to that. Their digital tax will go into effect January 23, 2020.
-The quality of domestic cheeses is improving, as American cheese makers take inspiration from Old-World recipes and production methods.
-Shelf space could open up to give smaller American makers a chance in large-scale retail markets.
Read the full list of products currently affected by the tariff hike here.