Irish dairy to be hit by Trump tariff

Irish butter, cheese, liqueurs and pork products are among the items from the EU that are to be hit with new US tariffs after the World Trade Organisation (WTO) ruled the US had the right to target $7.5bn a year of EU imports because it provided illegal support to plane maker Airbus.

As a major exporter of dairy and whiskey to the US, Ireland is right in the firing line should these tariffs be implemented.

The new tariffs will take effect from 18 October and will see certain products exported to the US hit with a 25% tariff. It is likely to well-known Irish brands such as Baileys and Kerrygold.

Details

The office of the US Trade Representative is expected to announce details of which products will be affected, with whiskey and butter among the goods included on the original list of goods drawn up earlier this year.

This list of 317 products, including 44 dairy products, among those European butter, yoghurt and 30 varieties of European cheese, had an overall import value of $1bn (€900m) in 2018.

The US is also threatening tariffs on Irish whiskey and Scotch, while a significant number of pork cuts and products could also be hit with tariffs. It is expected that the final list will be narrowed down.

In 2018, Ireland exported more than €340m worth of whiskey to the US, while butter exports to the US hit €161m last year.

Kerrygold is hugely popular among US consumers and has grown to become the second-largest butter brand in the US market and is the number one imported brand there.

Ireland shipped almost 35,000t of butter to the US last year, while 78m bottles of Irish whiskey and Irish cream liqueur were sold in the US.