Trump’s proposed 30% EU tariffs threaten French wine and cheese industry

Wine and cheese producers in France warn that the tariff proposed by president Donald Trump by 30 % on European imports will have a harmful impact on the agricultural industry in the country.

Trump announced last week that his administration will impose a 30 % tariff on goods from European Union members starting from August 1, noting the trade deficit and national security concerns.

In a letter to European Commission President Ursula von der Lin, Trump claimed that the European Union policies have caused a “major and unimportant trade deficit against the United States”, adding that the defect also poses a major threat to national security.

The president also warned that any retaliatory tariff imposed by the European Union will be matched and added to the basis price by 30 %.

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Jean Frankua Louisu, president of the DES Association of Industries (Anya), told Reuters that a 30 % tariff would be a “catastrophic” food industry in France.

He also spoke to Reuters, Francois Kazavier Howard, CEO of Dairy Association Fnil, said: “It is a real shock to milk and cheese producers – this is an important market for us.”

“It is a new environment that we will have to get used to – I don’t think this is temporary,” he told Reuters on Sunday while talking about commercial tensions and transfer rules.

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Bray and other cheeses are expected to be exposed to France through the definitions imposed by the United States on the European Union. (Istock / Istock)

Howard said that industrial leaders may need to rethink the market strategies in which they work.

The definitions can affect the French dairy sector, which is emerging approximately half of the dairy that it produces, including the United States, which imports butter and milk, but mainly cheese like wild.

If there are no changes, the French food exporters may lose tens of millions of euros every year, according to Eward.

He pointed out that the French sector sells about $ 409 million (or 350 million euros) in dairy products to the United States annually.

Food exporters in France are concerned about additional import taxes that pay their products far from the reach of shoppers tied for money in the United States due to inflation.

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President Donald Trump is attending a bilateral meeting with European Commission President Ursula von der Lin during the annual meeting of the Fiftieth World Economic Forum (WEF) in Davos, Switzerland, on January 21, 2020. (Reuters / Jonathan Ernst / Reuters)

“Products like wine, particularly, are consumed for fun -if you have less money to spend, you may give up the purchase,” Yannik Valiber told Reuters.

“We will be less competitive,” Fialip added, noting that the weakest dollar has already added pressure to exports to the United States.

After identifying Trump’s tariff by 30 %, von der Layen responded in a post on X, warning that the definitions will negatively affect both economists, but expressed its willingness to continue negotiations.

Von der Layen said: “The customs tariff will be 30 % for European Union exports to hurt companies, consumers and patients on both sides of the Atlantic Ocean,” said von der Line. “We will continue to work for an agreement by August 1. At the same time, we are ready to protect the interests of the European Union on the basis of proportional counter measures.”

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In a separate statement on the European Union trade, von der Layen said it would continue to deepen global partnerships “firmly in the principles of international trade based on rules.”

Bonny Chu and Rewerrs from Fox News Digital contributed to this report.