On Friday September 13th the WTO gave the US permission to implement additional tariffs on products of EU origin. The implementation of these tariffs is retaliation for government aid given by the EU to airplane manufacturer Airbus. The additional duties will be imposed as of 18 October 2019 on a range of goods worth 7.5 billion US dollars.
The EU has already announced it will strike back if the US follows up on its threats. But it will need to wait to do so, since they are awaiting the decision in the reverse case in which the EU accuses the US of giving government aid to competitor Boeing.
Businesses may wish to assess whether these additional tariffs may affect their business and as such check the list to determine whether their products are included.
In a broader sense, it will be important for clients to be aware of the impact that visible and invisible trade barriers can have on their business. This conflict is part of a broader trend of growing tension and an increasing number of trade conflicts. These conflicts can have a big impact on your supply chain.
The US has published a definitive list of the products that will be affected by these tariffs, amonst others coffee from Germany, whiskies from the UK, cheese and sea food from various EU member states. The full list can be found here: US list.
The EU also published their list earlier this year, this includes products like ketchup, game consoles and helicopters (EU list).
Are you interested in how these events can have an impact on your business? PwC has developed an immersive game based experience where companies can explore the effects of world events on their business/supply chain.
In case you are interested and would like more information get in contact with Claudia Buysing Damsté.
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