New Tariff War? US vs EU and UK
- The U.S. is activating new tariffs on $3.1 billion of exports from France, Germany, Spain, and the U.K., adding to an arsenal the Trump administration is threatening to use against Europe that could spiral into a broader transatlantic trade fight later this summer.
- The U.S. Trade Representative wants to impose new tariffs on European exports like olives, beer, gin, and trucks, while increasing duties on products including aircraft, cheese, and yoghurt, according to a notice published late Tuesday evening. The statement lays out a month-long public comment period ending July 26.
- If the U.S. follows through with its plan, it could hammer European luxury brands like Givenchy and Hermes — which produce leather goods — and Remy Cointreau and Pernod Ricard, which make cognac and champagne. LVMH Moet Hennessy Louis Vuitton would be particularly vulnerable because it produces a wide array of these products.
- Tariffs on British gin could increase U.S. prices at peak season for gin-and-tonics, potentially hurting British spirits companies like Diageo Plc, the London-based maker of Tanqueray; James Burrough, the maker of Beefeater gin; and William Grant & Sons, the maker of Hendricks gin. This disaster for Pubs in the U.K. that have just had the clearance from PM Boris Johnson to reopen.