Trump’s Cheese Tariffs May Be His Most Normal Trade Policy

If you’re a fan of European cheeses, I’m sorry to report the price outlook is not Gouda.

The U.S. and the European Union have a long-running trade dispute over airplane subsidies. Each side alleges that the other is subsidizing its major commercial-aircraft manufacturer (Boeing and Airbus, respectively) in violation of World Trade Organization rules. The WTO says both sides are right: Boeing and Airbus both receive improper subsidies. Soon, the WTO will say how much in retaliatory tariffs each side may impose to punish the other for these violations. And in preparation for that decision, the U.S. has prepared a list of $25 billion worth of European exports we might subject to 100 percent tariffs.

The list reads like an order sheet from Dean & DeLuca.

Tariffs may be applied to cheeses including Gouda, Stilton, Roquefort, and Parmigiano-Regianno. Olive oil. Olives. Dried cherries. Apricot jam, peach jam, currant jelly, pear juice. Ham, including Proscuitto di Parma, Jamón Ibérico, Jambon de Bayonne and any of the other delicious European hams. Wine. Whiskey. Brandy (e.g., Cognac). If you might buy it to throw a fabulous cocktail party, it may soon be subject to a prohibitive tariff.

Meanwhile, the EU has released its own list of goods it might tariff because of our subsidies to Boeing — it includes live lobsters, orange juice, and rum.

Donald Trump, who doesn’t drink, says you shouldn’t worry about wine tariffs because the best wines are American anyway. But while high tariffs that upset coastal snobs would seem to combine two of Trump’s passions, his strategy of threatening these tariffs is actually one of the more ordinary parts of his trade policy. Long before Trump was president, the U.S. and Europe have exchanged punitive tariffs on luxury and specialty goods as tools to push for resolutions to valid trade grievances [ . . . ]

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Trump could target French wine with tariffs

That bottle of French wine may be getting more expensive. 

That bottle of French wine may be getting more expensive.

President Trump said Monday that he plans to “do something” about the European Union tariffs imposed on American wine, saying the U.S. pays too much to export wine to France while the U.S. imposed low tariffs to import French wine.

“France charges us a lot for the wine. And yet we charge them very little for French wine,” the president told CNBC.com, adding that California winemakers have complained to him about the EU tariffs.

“So the wineries come to me and say…’Sir, we’re paying a lot of money to put our product into France, and you’re letting’ — meaning, this country is allowing — ‘these French wines, which are great wines, but we have great wines too — allowing it to come in for nothing. It’s not fair,”’ Trump said.

Source: Trump could target French wine with tariffs