EU to impose $4 billion in tariffs on US goods – what does this mean for dairy?

Wednesday, 18 November 2020

By Felicity Rusk

The World Trade Organisation (WTO) recently ruled in favour of the EU in the latest round of the Airbus-Boeing dispute. This allows the bloc to impose up to $3.99 billion of tariffs on US goods, although the impact of these on the dairy sector will be limited.

This is the latest development within the Airbus-Boeing dispute between the EU and the US. Last year, the WTO ruled in favour of the US, enabling the nation to impose tariffs of up to $7.5 billion on EU products.  

The list of affected US goods includes tariffs on civilian aircrafts along with a range of food, agricultural and industrial goods. Four dairy codes will now be subject to a new 25% tariff, including three cheese codes and milk protein concentrate. The tariffs were applied from 10 November, although they will not apply to goods that were already in transit.

The EU is a net exporter of dairy products to the US, and historically import very little in the way of dairy products in the past. Between 2017 and 2019, the US only accounted for 3% of all EU dairy imports. As such, the impact of the tariffs being applied is likely to be somewhat limited.



Sign up for regular updates

You can subscribe to receive Dairy market news straight to your inbox. Simply fill in your contact details on our online form and select the information you wish to receive.

Visit the Keep in touch page

While AHDB seeks to ensure that the information contained on this webpage is accurate at the time of publication, no warranty is given in respect of the information and data provided. You are responsible for how you use the information. To the maximum extent permitted by law, AHDB accepts no liability for loss, damage or injury howsoever caused or suffered (including that caused by negligence) directly or indirectly in relation to the information or data provided in this publication.

All intellectual property rights in the information and data on this webpage belong to or are licensed by AHDB. You are authorised to use such information for your internal business purposes only and you must not provide this information to any other third parties, including further publication of the information, or for commercial gain in any way whatsoever without the prior written permission of AHDB for each third party disclosure, publication or commercial arrangement. For more information, please see our Terms of Use and Privacy Notice or contact the Director of Corporate Affairs at  © Agriculture and Horticulture Development Board. All rights reserved.