Trump declares ‘big win’ in EU trade war as French wine, cheese and Scotch whisky is hit with 25% tariff in revenge for Airbus subsidies
DONALD Trump has slapped 25 per cent tariffs on single malt Scotch whisky, French wine and Italian cheese in retaliation for subsidies provided to aircraft firm Airbus.
The administration released a list of hundreds of European products set to be whacked with new charges, including cookies, salami, butter and yoghurt.
During a press conference in the oval office with Finland’s PM Trump declared the move a “big win” for America saying countries had been "ripping off the United States for many years".
The move against Scotch threatens to damage the industry and hurt jobs and investment in Scotland, the sector's trade association said today.
America is Scotch whisky's largest and most valuable single market, with over 1 billion pounds of the product being exported there last year.
However main target of the US tariffs are Airbus aircraft made in the EU, which face a 10 per cent levy from the administration.
The WTO found, in a dispute dating back to 2004, that both France-based Airbus and its US rival Boeing received billions of illegal state aid.
The US has been told by the WTO it can impose tariffs on £6.1bn of EU goods following a 15-year trade dispute over illegal state subsidies.
TRADING BLOWS What European products are set to be hit by Trump's tariffs and which will be spared?
Slapped
- French wine
- Italian cheese
- Single-malt Scotch whisky
- German and British camera parts
- Industrial microwave ovens
- Blankets
- Printed books
- Sweet biscuits
- Waffles
- Cookies
- Salami
- Butter
- Yoghurt
Spared
- Italian wine
- Pasta
- Olive oil
- Helicopters
- Frozen fish
- Lobster
- Sparkling wine
- Stemware
- Tiles
In many cases the tariffs will only be applied to some EU countries, including German and British camera parts, industrial microwave ovens, blankets, printed books, sweet biscuits and waffles.
The Donald’s list also includes UK-made wool clothing, olives from France and Spain, EU-produced pork sausage and other pork products other than ham, and German coffee.
Some Italian foods including Parmesan Reggiano, Romano and provolone cheese, Italian fruits, clams and yogurt would also face the tariffs, but Italian wine, pasta and olive oil were all spared.
Other products winning reprieves include chocolate, Greek, French and Portuguese olive oil, helicopters, frozen fish, lobster, sparkling wine, stemware and tiles
The new tariffs are to take effect as early as October 18.
The WTO's decision to allow the US to impose tariffs was announced ahead of a ruling on the EU's request for to impose tariffs on the US - expected early next year.
This WTO warning threatens to open a new transatlantic front to the trade war that the US is already fighting across the Pacific with China.
KICKING UP A STINK
The European Commission said any targeted tariffs following the judgement would be "short-sighted and counterproductive".
Speciality food importers in August had urged the Trump administration to skip the tariffs, saying "there are few to no domestic products" that could replace the imported items.
The Speciality Food Association said Trump's tariffs would affect 14,000 US speciality food retailers and over 20,000 other food retailers.
Ralph Hoffman, executive vice president of New Jersey-based Schuman Cheese, one of the largest importers of hard Italian cheeses, said the tariffs could slash his firm's imports by 30% in the middle of the critical holiday season.
"It looks pretty bad. They hit cheese hard," said Hoffman, who is also a vice president with the Cheese Importers Association of America.
He said the company brings in over 1,100 containers of cheese each year, serving US big box stores such as Costco and BJ's Wholesale Club.
"This will put a massive dent in that," he said.
Many of the tariffs, especially those on alcohol, were not popular on social media.
Jacob Levy, a professor of political theory at McGill University, wrote on Twitter the tariffs were "an interesting strategy for lowering the trillion-dollar deficit: increase everyone's need to drink to get through each day's news, then tax the heck out of the good alcohol."
The news of the tariffs comes a day after The Donald branded the Democrat impeachment probe against him "bulls***".
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