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| Possible US tariffs will also affect the food industry |
| Bratislava, 05.02.2025 |
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| The possible introduction of import tariffs by the US towards the EU will also affect the European food sector, which is the largest European manufacturing sector and the largest food exporter in the world. The US is the second largest agri-food export destination of the EU with a positive foreign trade balance of 18 billion euros (2023). The US is also the third largest agri-food importer to the EU. This was stated by the Director of the Food Chamber of Slovakia (PKS) Jana Venhartová.
According to her, the introduction of a universal import tariff, especially one that applies to EU goods, could complicate trade relations between the EU and the US. The key consequence of the introduction of tariffs is the separation of the US from global supply chains, which could make trade more expensive and disrupt long-term relationships with suppliers abroad. This US policy may particularly burden sectors in which foreign inputs are essential, putting American companies at a competitive disadvantage worldwide.
Furthermore, Venhart said, a blanket tariff approach is likely to trigger retaliation from other countries, including the EU, as history has shown that such policies often lead to reactions from trading partners. Such retaliatory tariffs could harm EU and US exporters, restrict their access to critical markets, and affect sectors that contribute significantly to transatlantic trade and investment, including agri-food products.
She noted that the imposition of reciprocal tariffs between the US and the EU is not new. In October 2019, the US imposed retaliatory tariffs of 25% on a range of EU agri-food products (e.g. wine, olive oil, dairy products such as butter and cheese, Scotch whisky) from certain EU Member States. This led the EU to impose countervailing measures, 15% on aircraft, 25% on a range of agri-food products imported from the US (including nuts and spirits) and industrial goods, mirroring the countermeasures imposed by the US.
She noted that in June 2021, both sides announced a five-year suspension of tariffs, including on agri-food products, as part of a WTO agreement on the Boeing-Airbus trade dispute. If a permanent agreement is not reached or the suspension is not extended until July 2026, the EU's retaliatory tariffs on US agri-food products will return.
"Despite the fact that the Slovak food industry carries out most of its production within the EU countries, the introduction of tariffs on agri-food imports will also affect the Slovak Republic. Companies that will not be able to place their production on the US market will seek markets for their products primarily within the EU, which will increase the pressure on competitiveness and ultimately affect Slovak food companies," Venhartová underlined.
She added that the largest share, up to 19% of total exports to the US from the EU, is wine, followed by spirits (11%), olive oil, biscuits, but also dairy products and chocolate. The most imported products from the US to the EU are processed and preserved fruits and vegetables, beverages and other food products.
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Address : Euro-Brew Ltd., Hlboká 22, 917 01 Trnava, Slovakia
Tel. : +421 33 53 418 53, Fax : +421 33 53 418 52, E-mail : info@eurobrew.sk |
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