US President Donald Trump has unintentionally put the economic importance of Gouda cheese and Edam cheese firmly on the map. This is done by threatening import duties on these products. Dutch politicians are already sharpening their knives, but in the trade the feeling of 'first seeing, then believing' predominates.
Gouda Cheese and Edam Cheese were Tuesday, April 9 suddenly prominent in the news. Trump is threatening an import tax on a total of $11 billion worth of goods from the European Union, including Gouda Cheese and Edam Cheese. The levy is a response to the subsidy that the European Union provides to aircraft manufacturer Airbus.
Strengthen competitive position
Trump's action fits in his strategy of economic threats to trading partners, which are mainly intended to boost the competitive position of the United States. For example, he also applied this tactic in South America (during the NAFTA negotiations) and the trade conflict with China. Trump has already introduced an import tax on European steel and aluminum.
The key question is whether Trump is just barking at the Dutch cheese, or whether he is actually going to bite it. Considering Dutch cheese exports in 2018 (€78 million), the cheese market is a rewarding, but not crucial, sales market for the dairy sector. The Dutch cheese trade and cheese industry is therefore reacting expectantly for the time being on the 'tough language' from Washington. There is simply not enough known yet; For example, nothing is yet known about the amount of the levy.
Concerned responses
Politics in the Netherlands is responding Worried to Trump's threat; not only because of the cheese, but also because of the overall effect that these import duties can have on the Netherlands. A debate on the issue has already been requested in the House of Representatives. The European Union calls the proposed tariffs 'highly exaggerated' and declares that it is preparing a counter-offensive in the support that the US government provides to Boeing.
The Dutch business organization VNO-NCW reports Business Insider to have no appetite for a trade conflict between the United States and the European Union. The organization therefore calls on the United States and the European Union to sit down together and discuss a new trade agreement. And that is precisely the agenda that Trump has also applied with South America and China.