Imported food price will go up while the US starts a trade war with the EU on Oct 18th




While everyone eyes on US-China Trade talk, I need to remind you that starting the 4th week of October, you probably have to think twice before you put some of the items in your grocery list, such as Italian Cheese, French wine or Scottish Whiskey. Is that " Romantic French restaurant dining in our anniversary " is still at your to-do list? Perhaps it could be an " American Fine dining restaurant". ( If money is beside the point, you can still stick to French restaurant plan) . This is because U.S start a trade war with European Union countries targetting more than 150 goods imported from European Union countries, as well as an additional 10 percent tariff on new aircraft from France, Germany, Spain, and the United Kingdom, effective Oct. 18, 2019. What started as an international trade dispute over subsidies in the airline industry, resulted in the World Trade Organization "awarding" the U.S. the ability to slap tariffs on $7.5 billion worth of goods from the European Union. While some of those tariffs are directed at aircraft, a large amount of them fell on agricultural goods. A 25% tariff on German coffee, Scotch whiskey, British biscuits, Spanish olives, Italian cheeses, French wines and many more are among the myriad of tariffs on EU goods set to go into effect on Oct. 18. The tariff hike news is sent out from the USTR office on Oct 3rd which gives all importers only 2 weeks short notice, so it's such a short period of time for the supply chain, so I believe they are going to be passed right on to the consumers. See link below for the complete EU tariff list https://www.strtrade.com/media/publication/7918_EU_Large_Civil_Aircraft_Final_Product_List.pdf A Bloomberg article adds that the U.S. is “considering ‘carousel’ retaliation, which would enable the U.S. to regularly shift around the targeted goods.” That has been said, these tariff increase will take effect in the long term. But of course, the European Union will not sit there and do nothing. They also make points that they will respond with higher tariffs of certain goods later next year. During the past 4 years, you can see how much our president Trump love to use the tariff weapon to be against everyone of its alliance. One day he threats people to withdraw from WTO. Another day, he threats Canada and Mexico to increase their product tariff coming into the US. And then aluminum and steels, then US-China trade war, and now he uses food as a weapon to be against the European Union. The trade war will never end as long as Donald Trump is on duty.


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