The US administration has announced a broad package of new “reciprocal” tariffs on a wide range of European Union goods. Among the sectors affected is dairy.
“This move is unjustified,” said Alexander Anton, Secretary General of the European Dairy Association (EDA). “Dairy exports from the EU, particularly cheese exports, account for less than 2% of total domestic consumption in the US. These cheeses are intended for a very unique segment of the US market, offering US consumers choice and excellent quality, and therefore do not compete directly with American dairy products.
The recently announced tariffs are part of an escalation of trade actions by the White House, reportedly in response to perceived trade imbalances and a desire to impose “reciprocal tariffs” that match those imposed by other countries on US products.
“Not only do the US and the EU have the largest bilateral trade and investment relationship and the most integrated economic relationship in the world, but the overall (goods and services) trade balance between the US and the EU is largely in equilibrium – the perfect foundation for a thriving trade relationship,” comments Anton.
The EDA warns that the US decision risks not only harming EU exporters but also limiting American consumers’ access to the high-quality dairy products they value and trust. As European cheeses, cream and specialised premium products are valued by US consumers, the introduction of tariffs could significantly limit choice and increase prices in the American market.
Anton went on to emphasise that there could not have been a worse time for customs innovations. He said: “Our sector is already under enormous pressure due to the anti-subsidy investigation in China and the current problems in the global market. Now, US tariffs risk exacerbating this crisis. This is a blow to the rural economy in Europe and to the spirit of fair and rule-based trade.”
The EDA is calling on the European Commission to respond and protect EU dairy products from further consequences. Anton concluded: “Trade policy should be smart, not punitive. Dairy products are not the problem here; using them as a pawn only creates new problems on both sides of the Atlantic.”
INFAGRO based on material from dairyindustries.com
