US proposes more tariffs on EU dairy

In volume terms, cheese will be the most impacted if the tariffs are implemented
In volume terms, cheese will be the most impacted if the tariffs are implemented

The United States government has proposed more tariffs on European Union dairy products amid the ongoing Airbus-Boeing trade dispute.

Both the United States and EU claim that each others aeroplane manufacturer is unfairly subsidised.

Last week, President Trump's administration extended the list of EU products subject to tariffs amid fears of a rise in trade escalation.

These are in addition to the proposed import duties on a selection of products announced back in April.



Cumulatively, the proposed tariffs amount to an estimated $25 billion (£20bn).

According to AHDB Dairy, the latest list of products includes fermented and curdled milk, whey protein concentrates, dairy spreads and additional cheese trade codes.



In volume terms, cheese will be the most impacted if the tariffs are implemented.

The US is the top export destination for EU cheese. In 2018, 16% of the cheese exported out of the EU was shipped to the US.

The extension of products potentially impacted means that around 96% of EU cheese exports to the US will be subject to tariffs, 14% more than the original proposal.

Tariffs on whey protein concentrates have been added in the latest round of tariffs, which make up the majority share (88%) of whey products imported from the EU.

The implementation of the additional tariffs would make it more expensive to export goods to the US, which could encourage EU exporters to look at alternative export destinations.

What will happen next?

The inclusion of the additional goods to the proposed tariff schedule will be subject to a public comment period, followed by a hearing in early August.



Additionally, the World Trade Organisation’s decision on the value of the retaliatory tariffs is expected to be released in August/September.