Eucolait regrets yesterday’s decision by the United States to impose a baseline tariff and higher “reciprocal” tariffs on its trading partners. Starting on April 9, EU dairy products will be subject to an additional 20% ad valorem duty, a move that threatens to disrupt longstanding trade relations.
The United States is the third-largest market for EU dairy products globally, with exports exceeding €2 billion annually. The new tariffs will disproportionately impact the dairy sector, which is already burdened with high tariffs generally ranging from 1,000 to 2,200 USD per ton. Even within preferential tariff rate quotas, a minimum 10% tariff applies.
The EU-US trade relationship is vast and intricate, valued at approximately €1.6 trillion annually. While the overall trade in goods and services between the two regions is balanced, there are sector-specific variances. Notably, the EU maintains a significant dairy trade surplus with the US. European dairy companies have invested heavily in the US market over the years, driven by the demand for premium products like cheeses, butter and casein. This imbalance is also a legacy of multilateral trade negotiations conducted more than three decades ago, when the US was a net importer of dairy products.
Since the launch of the Transatlantic Trade and Investment Partnership (TTIP) negotiations in 2013, Eucolait has consistently advocated for free and fair dairy trade between the EU and the US, and we will continue to do so.
We fully support the European Commission’s ongoing efforts to de-escalate tensions and call for a negotiated solution to avoid the imposition of unjustified and disproportionate tariffs that could severely harm the dairy sector.
For more information, please contact:
Jukka Likitalo – Secretary General: jukka.likitalo@eucolait.eu
Julie Collard – Economic Affairs & Trade Manager: julie.collard@eucolait.eu
Eucolait is the European Dairy Trade Association, representing the interests of the dairy trading community in Europe. Our mission is to promote free and rule-based trade in dairy products within the EU and globally.