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EU tariffs on U.S. ag goods making waves

The European Union’s 25 percent tariff on nearly 200 U.S. products including corn is set to go into effect Friday and is causing concern.

The EU has said it will impose the tariff on $3.2 billion worth of U.S. goods including corn, dry beans, cranberries, orange juice, rice, and peanuts.  The EU Trade Commissioner says the EU was left with no other choice after the U.S. cited national security as a reason for implementing tariffs.

“We know that there’s bean production in several states that are Republican led states at the moment and it feels like that’s where the aim was for the Europeans,” says Michigan Bean Commission executive director Joe Cramer.  He tells Brownfield U.S. exports are starting to see the effects of the EU’s retaliation against President Trump’s steel and aluminum tariffs.  “We’re already aware of some existing contracts where the origin has been changed to Canadian origin.”

Cramer says traders have not reported that EU tariffs have weighed on dry bean prices yet, but shipments have come to a standstill.  He says trade uncertainty with NAFTA partners and others is also pressuring foreign buyers to explore sourcing from alternative origins. Up to 45 percent of Michigan dry beans are exported annually.

Canada is also set to impose retaliatory actions on U.S. products.

 AUDIO: Interview with Joe Cramer