US Government Imports up to 25% on imports from the EU to 18th October 15:05
The US government will take measures to add up to 25% tariffs on wines and cheeses imported from the EU with formal approval by the WTO = World Trade Organization over the conflict of aircraft trade with the EU = European Union. It will be activated on the 18th of this month. On the other hand, the EU is also taking an attitude of taking countermeasures, and the conflict between the two is likely to intensify.
The WTO officially approved the EU's countermeasures against the EU on the 14th, after each subsidy for the American “Boeing” and the European “Airbus” was unjustified.
In response to this, the United States will launch measures to add high tariffs on imports from the EU up to $ 7.5 billion per year and Japanese yen worth 800 billion yen.
The target is 160 items, and 25% is added to agricultural products such as French wine, British whiskey, and international cheeses, and 10% tariff is added to aircraft.
On the other hand, if the EU gets approval from the WTO for measures to add duties on imported goods from the United States, the conflict between the two is likely to intensify with the attitude of taking action as a countermeasure.
Apart from these aircraft conflicts, President Trump is considering measures to add higher tariffs on cars imported from Europe to reduce trade deficits.
The United States is not only in China but also in the EU, and there is a possibility that it will become a new risk to the world economy due to the intensifying trade disputes.
The target is also French wine and British suit
The target items are 160, 25% for agricultural and industrial products imported from the EU to the United States, 10% for aircraft, and customs duties.
The main items in liquor are French and Spanish wine, British Scotch whiskey, Italian and Irish liqueurs.
For dairy products, cheese and butter from various countries and Bulgarian yogurt.
Food includes Spanish olives and German pork sausages, and clothing includes British suits.
The amount of imports is worth 7.5 billion dollars, but it is about 1.5% of the annual import value from the EU, which is not large compared to the 360 billion dollars imported products that add high tariffs to China.
However, many of the target agricultural products are familiar to American consumers, which may affect both the EU and the United States.
America is also strong in the EU
President Trump is making strict demands on the EU, which has a trade deficit of $ 170 billion annually after China.
The conflict between the two began in June last year when President Trump added high tariffs on steel products imported from the EU, and the EU also countered it with retaliation.
In addition, President Trump has put pressure on the introduction of measures to add high tariffs to cars imported from the EU to reduce trade deficits under Article 232 of the Trade Expansion Act.
The reason is that a large number of imported cars are judged to be detrimental to American security and imports must be reduced to protect the domestic automobile industry.
In order to avoid this conflict, in July last year, we agreed to start discussions under a new framework on the elimination of tariffs on industrial products excluding automobiles.
However, while the US side showed a policy to open the market for agricultural products as a target of negotiations, France and other countries are repelling and negotiations have not started.
The Trump administration calls for the start of negotiations, and there is a view that it will trigger measures to add tariffs on imported cars.
The deadline for determining this measure is one month later in the middle of next month, and there are concerns that tensions will increase between the US and the EU.
There are strong concerns about the impact on the EU economy, which includes German Volkswagen and BMW, which export cars to the United States. Both parties are negotiating and whether there is a compromise is unpredictable.
I would also like to discuss preparations for countermeasures against the EU
While the US has a policy of invoking a measure to add tariffs on imported goods from the EU on the 18th, the EU is also preparing measures to impose tariffs against it. A large list of items ranging from large heavy machinery to foods totaling up to 20 billion dollars, or more than 2 trillion yen in Japanese yen.
However, Mr. Malmstrom, who is in charge of trade policy in the EU, told the US side at the press conference on the 14th that “the fact that the WTO has approved the tariff addition does not have to be put into practice. It was clarified that he sent a letter saying "It is desirable to look for a solution."
After that, he said, “I still have four days to activate, and I will convey this message again.”
Meanwhile, the French Minister of Economic Affairs Le Merer said on the 10th of last week that he would have no choice but to take countermeasures, saying, “If the United States does not want a solution through discussions,” he said, We still have time and expect to be wise. ”