News trade war
Trump's plan threatens European cheese exports
US President Donald Trump announces that he is considering an import tax on Gouda cheese and Edam cheese. Such a measure is potentially a threat to European dairy exports.
Trump says he will introduce tariffs on various goods worth $11 billion from the European Union. The list includes cheese, yogurt, wine, carpets and binoculars. These levies are a response to European support for the German aircraft manufacturer 'Airbus', which is the equivalent of the American Boeing. The aid would have had negative consequences for the United States, according to the World Trade Organization (WTO).
President Trump has already reported that the tariffs will not be implemented if Europe stops providing subsidies to companies such as Airbus.
Important sales market
If these import duties are nevertheless implemented, it will be a loss for the dairy sector in the European Union. The United States is the main market for European cheeses. In 2018, the European Union shipped just under 135.000 tons of cheese to the country, with Germany, the Netherlands and France in particular exporting a lot.
The fact that the US government is threatening an import tax on European cheeses may also have to do with sky-high cheese stocks in the United States. In mid-February the American cheese stock more than 600.000 tons, which has to do with the country's trade wars with Canada and Mexico.
Low milk price
The increased cheese stocks also have a paralyzing effect on American milk prices. The milk price (class III) in February was $15,04 per CWT, which equates to a meager €30 per 100 kilos. The low milk price leads to an outflow of dairy farmers.
Figures from the United States Department of Agriculture (USDA) show that the number of dairy farmers has shrunk by 6,5%, which amounts to 2.750 dairy farms. The dairy sector has therefore repeatedly approached Trump insisted to end the trade wars.
Wouter Job
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