Commission called on to shield EU dairy from US tariffs

The European Dairy Association (EDA) has urged the European Commission to respond strategically to the 20% tariffs announced by the US and to shield EU dairy from further fallout.

On Wednesday night, US president Donald Trump declared that the US would be imposing a 20% tariff on EU goods imported to the US.

Secretary general of the EDA Alexander Anton said that trade policy must be smart, not punitive.

“Dairy is not the problem here. Using it as a pawn only creates new problems on both sides of the Atlantic,” he said.

“This move is unjustified,” Anton said.

“EU dairy exports, most notably cheese, account for less than 2% of total US domestic consumption. These cheeses serve a very unique market segment in the US, offering choice and excellence to the US consumers and therefore do not compete directly with American dairy products,” he said.

“Not only have the USA and the EU the largest bilateral trade and investment relationship and the most integrated economic relationship in the world, but the overall (goods and services) US-EU trade balance is basically in an equilibrium – this is an ideal basis for a prosperous trade relationship.

“A trade dispute between the US and the EU therefore is clearly in the lose-lose category,” he said.

Harm

The EDA warned that the US decision risks not only harming EU exporters, but also limiting American consumers’ access to the high-quality dairy products they value and trust.

With premium European cheeses, creams and specialty products appreciated by US buyers, the tariffs could significantly restrict choice and drive up prices in the American market, it said.

Anton stressed that the timing could not be worse.

“Our sector is already under enormous pressure from China’s anti-subsidy investigation and ongoing global market challenges. Now, US tariffs risk compounding that crisis. This is a blow to rural economies across Europe - and to the spirit of fair and rules-based trade,” he said.

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