What do cheese, nuts, and wine have in common? First and foremost, they are the critical components alongside a great charcuterie board. Second, they are now a portion of U.S. published list of European imports that are subject to tariffs. Consequently, this list follows the newest trade dispute between the EU and the U.S.
It started with airplanes
Ultimately, the threat of tariffs began with subsidies to Boeing Co., according to Sourcing Journal Online. The U.S seeks $11.5 billion in “damages through duties on European goods ranging from helicopters to cheese to counter state aid to Airbus SE.” It turns out; this follows an almost 15-year-old fight over the World Trade Organization’s distortion of the market for aircraft makers.
CNBC stated that the Trump administration has called out the EU for being a “brutal trading partner.” Unfortunately, this is due to their singled subsidies to Airbus, which is believed to be harmful to the U.S. This dispute is adding to shaky global trade circumstances. However, this is by no means another trade U.S/China trade war in the making. However, it is a reason for concern.
From a truce to tariffs
In the vein of protectionism, the U.S has added imported metal duties, limiting foreign cars that enter the American market. Although, earlier in the Summer EU President Jean-Claude Junker and Trump vowed to “work toward scaling back transatlantic market barriers.”
Instead, this would add a possible new 22.8 billion Euros on American-made imports to Europe, detailed the same Sourcing Journal report. Besides, Anthony Gardner, a former American ambassador to Europe, expressed his concern to CNBC. All things considered, he said that we should not be working against one another. In fact, when we look at our “common concerns” between the U.S. and European Union about China, there are more similarities than differences between us. He states that “We probably agree on 90 percent. What we should be doing is work with the EU more, not threatening the EU saying we’re going to put tariffs.”