Today the EU’s retaliatory trade tariffs against the US go into force.
These include levies on well known American products such as Levi’s jeans, Bourbon whiskey, and even Harley Davidson motorcycles. The EU are applying 25% tariffs on most of the American products they’ve stated. However, a few products have had a 10% levy slapped on them, while a couple have had a full 50% levy placed on them.
There are 341 different kinds of products from the US which will be affected by the tariffs.
The tariff comes in response to President Donald Trump’s 25% tax on steel and 10% on aluminium imports to the US. The escalating trade war is an attempt by Trump to bolster US metal manufacturing industries. This is in line with Trump’s aggressively protectionist, America-first policies.
In addition, India says it will raise taxes on 29 specific American products. China has also responded to tariffs imposed on its products with tit-for-tat tariffs on American products. Turkey is also firing back with tariffs on US products.
What is a tariff?
Simply put, a tariff is a tax placed on certain classes of products. In this case, the classes of products are various, but all are united by the fact they are produced by American companies.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The tax is applied to products as they are imported into the EU.
Technically, the tariff is paid by the brand exporting the goods into the EU. For example, if Harley Davidson are exporting a shipment of motorcycles into the EU they pay extra to do so.
However, the compensate for that, most brands will pass that cost onto the consumers. Therefore, the price of products from these particular classes will likely increase.
Brands which will be affected by the tariffs:
Here are a few of the well-known brands whose products will become more expensive:
- Jack Daniels
- Bulleit Bourbon
- Harley Davidson motorcycles
- Ocean Spray
- Estée Lauder Companies (including Clinique, MAC, Bobbi Brown, DKNY, Aveda, and Origins)
- Calvin Klein
However, these are just a tiny sample of the more well-known brands which the tariffs will affect. In addition, the full list of products which the tariffs apply to can be found below.
Which products will the EU tariffs affect?
For customers in the EU, these are some of the most noteworthy products for which prices will increase because of the EU tariffs. The full list of items can be found here.
It is important to note that only American brands selling these products will be affected. EU-produced bourbons and denim products, for example, will not increase in price.
Food & drink:
- Kidney beans
- Peanut butter
- Orange juice
- Cranberry juice
- Bourbon whiskey
- Whisky other than bourbon (Jack Daniels whisky, for example.)
- Essential oils
- Eye make-up
- Pedicure preparations
- Make-up or skin powders
- Lip make-up preparations
- Hair lacquers
- T-shirts, singlets and other vests
- Denim products
- Leather boots
- Jewelry made of precious metals, also those clad in precious metals
- Motorcycles and mopeds
- Sailboats and yachts
- Motor boats
- Rowing boats and canoes
- Goods lorries
- Fishing boats
- Cotton bed linen
- Playing cards
- Handkerchiefs and hand towels
- Tablecloths and serviettes
- Blankets and travelling rugs
- Garden umbrellas
- China or porcelain items
- Washing machines
- Wireless video games controllers
- Portable educational electronic devices often aimed at children
- Electrical machines with translation or dictionary functions
- Pool floats
- Chewing tobacco
- Iron (in basically all forms)
- Steel (in basically all forms)
- Painted canvas used in theatrical scenery
- Various kinds of glass
- Certain types of battery
- Aerial amplifiers
- Sunbeds, sunlamps and similar suntanning equipment
- Electric fence energisers