European Dairy Association condemns 'sweeping' US tariffs

The European Dairy Association (EDA) has condemned "sweeping tariffs" by the US administration on goods from the European Union.

The association, of which Dairy Industry Ireland (DII) is a member, said that the targeting of dairy is "unjustified".

Last night (Wednesday, April 2), US President Donald Trump announced a series of “reciprocal tariffs” on other nations, including 20% on EU imports to the US.

There will be a baseline or minimum tariff of 10% placed on all goods entering the US, which will take effect from April 5.

The individualised reciprocal higher tariff on the countries with which the US has the “largest trade deficits”, including the EU, takes effect April 9.

The EU is working on a series of counter tariffs, however, no announcement has been made yet.

The European Dairy Association warned that the US decision risks not only harming EU exporters but also limiting American consumers’ access to high-quality dairy products.

The association has urged the European Commission to "respond strategically and shield EU dairy from further fallout".

The EDA said that for premium European cheeses, creams, and specialty products the tariffs could significantly restrict choice and drive-up prices in the American market.

“This move is unjustified” said Alexander Anton, secretary general of the European Dairy Association.

“EU dairy exports - most notably cheese - account for less than 2% of total US domestic consumption.

"These cheeses serve a very unique market segment in the US, offering choice and excellence to the US consumers, and therefore do not compete directly with American dairy products," he added.

The newly announced tariffs come as part of the White House’s escalating trade actions, in response to perceived trade imbalances.

"Not only have the US and the EU the largest bilateral trade and investment relationship and the most integrated economic relationship in the world, but the overall (goods and services) US–EU trade balance is basically in an equilibrium – this is an ideal basis for a prosperous trade relationship.

"A trade dispute between the US and the EU therefore is clearly in the lose-lose category,” Anton said.

He noted that the EU dairy sector is already under enormous pressure from China’s anti-subsidy investigation and ongoing global market challenges.

"Now, US tariffs risk compounding that crisis. This is a blow to rural economies across Europe and to the spirit of fair and rules-based trade," he said.

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