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. At this moment the impact of these tariffs is uncertain, EU sources expect additional duties on a range of goods worth between 5 and 7 billion US dollars. President Trump has threatened tariffs on 11 billion US dollars of goods. A final report by the WTO on this matter, including an amount of the government aid, is expected by the end of the month.
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.
What does this possibly mean for your business?
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.
There is no definitive list yet which products will be affected by these tariffs. So far, the US has published two provisional lists. These lists consist of two sections. The first section applies to products from France, Germany, Spain and The United Kingdom. The second section applies to all 28 Member States. Please find hereafter the links to these two lists. The first list contains products like helicopters and non-military aircrafts and parts, while the second list covers a broader range of goods like coffee, textiles, lenses etc (preliminary list / additional list - see attachments).
The EU also published their list earlier this year, this includes products like ketchup, game consoles and helicopters (EU list - see attachment).
Game of Trade
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.