Food industry gearing up for US ‘retaliatory’ strikes

EU FOOD and drink producers are bracing for possible retaliatory action from the US, in the latest instalment of the transatlantic trade war.

Last week, the bloc’s trade directorate published a list of US products it intends to target following President Donald Trump’s intention to impose steel and aluminium tariffs on most imports.

The list of products — which includes bourbon, whiskey, rice, orange juice, clothing and shoes, as well as steel — needs to be approved by EU producers first, and then submitted to the World Trade Organisation.

Once the WTO approves, it would free up the bloc to impose tariffs of up to 25pc on such products within 90 days.

Other products, on a separate list, could face even higher tariffs, but only after three years, when the WTO completes its settlement procedure.

All the products amount to a value of €6.4bn for the EU.

EU pricers now have 10 days to look over the list. The move, once approved by the WTO, would give the EU the right to tax the products, but a separate decision would have to be made to set the tariff rate.

According to one EU source, there is nervousness that EU food and drink producers — including Irish whiskey distillers — could be faced with tit-for-tat tariffs once the bloc’s move goes through.

EU officials still hope President Trump will exempt European steel and aluminium exports from the tariffs, like he has done for Nafta partners Mexico and Canada, and has said he could do for the UK.

“This is really, totally unacceptable — we are security partners of the US and we should be treated as such,” an EU official said, adding that singling out the UK for special treatment “would be politically something very disruptive on transatlantic relations”.