Major Victory: US Importers Stockpile Cheese And Scotch

In retaliation for EU subsidies on Airbus, Trump will impose tariffs on cheese and scotch. Importers stockpile both.

In an alleged "major victory" for Trump, the US Trade Representative announced U.S. Wins $7.5 Billion Award in Airbus Subsidies Case.

Bear in mind, Airbus is expected to win a larger WTO suit against Boeing next year.
 

It would seem that the best course of action would be for Boeing and Airbus to stop illegal subsidies, but that's not how Trump's mind works.

Trump Strikes Back

In retaliation for Airbus subsidies, Trump will strike back at the EU with tariffs on cheese and whisky makers.

This started a chain reaction in which U.S. Importers Stockpile Parmigiano and Provolone.

Ambriola Co Inc’s mammoth warehouse in West Caldwell, New Jersey, is crammed full of boxes and wheels of harder cheeses such as Parmigiano Reggiano, Pecorino Romano and Grana Padano - and more is coming, lots more.

Phil president and chief executive officer of Ambriola, a unit of Auricchio SpA, one of Italy’s largest cheese producers, is among the many importers and shop owners across the country who are scrambling to stockpile European cheeses before new U.S. tariffs kick in on Oct. 18 in efforts to shield consumers from price hikes.

The Trump administration on Wednesday slapped 25% tariffs on cheese and other European Union products ranging from whisky to woolens, in retaliation for EU subsidies on large aircraft. Both sides say they are open to negotiations, but trade experts see little chance of averting the duties - at least in the short run.

Some higher-priced items will simply disappear from stores, he predicted, like Moliterno al Tartufo, an aged Italian cheese with an intense truffle flavor. Even Parmigiano Reggiano could be at risk if prices rose to $30 a pound, he said.

Scotch Too

For now, EU Pledges Restraint as U.S. Moves to Add Tariffs

President Trump, who has repeatedly claimed the EU has taken advantage of the U.S., is also poised to decide by Nov. 13 on whether to impose duties on imports of European cars and auto parts. “A nice victory!” Mr. Trump tweeted on Thursday, hailing the WTO award in the long-running aircraft fight.

Washington strategically crafted its list to hit exporters across the EU, and particularly in the four countries that make up the Airbus consortium—Britain, France, Germany and Spain.

Of the U.K. products targeted by the U.S., single-malt Scotch whisky makes up more than half of the total value—more than $460 million, according to the Scotch Whisky Association, a trade organization. “The U.S. is our largest and most valuable single market,” SWA Chief Executive Karen Betts said, citing some $1.25 billion in annual exports. “It will undoubtedly damage the Scotch whisky sector.

Despite the EU’s current restraint, the threat of escalation persists. European officials warned the EU would hit back if U.S. duties are still in place when the bloc receives its WTO award in the Boeing case.

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Moon Kil Woong 1 month ago Contributor's comment

This is the continuing legacy of a trade policy gone awry. The tariffs are causing instability and slowing business in the US and throughout the world.