From 18 October will come into effect 25% duties on pecorino romano, parmigiano reggiano, provolone and ham. Instead, olive oil and prosecco would be saved. After the trade war against China, Donald Trump is aiming straight at Europe, and for Italian exports – as for that of the other EU countries – there are problems. The Made in Italy: runs the risk of seeing business vanish for about one billion euros a year, with the agri-food sector at the top of the ranking of those most affected.
It all started on Wednesday, when the World Trade Organization has authorized the United States to impose tariffs on European products worth 7,5 billion dollars a year. The decision stems from mutual accusations between the US and the EU over the production of aircraft: Brussels accuses Washington of having given aid to Boeing, while the Americans accuse Europe of having done the same with Airbus.
Although Italy is not part of the Airbus consortium - on the contrary, many companies in our country work for Boeing - the Made in Italy agri-food chain is the one that risks losing the most (together with that of France, which would also be affected in luxury goods). For example: the Ham it could go from 20-34 up to 70-90 euros per kilo. According to the latest rumors, the wine could be saved.
Not only that: the US would also like to impose the so-called "Carousel system”, which consists in not establishing once and for all the products affected by the very high tariffs, but changing them periodically, in order to do even more harm to the European economies. The EU claims this practice is illegal.
Meanwhile, Brussels invites the US to dialogue, but at the same time makes it clear that the commercial attack would not go unpunished. Moreover, a trade war of similar proportions also risks affecting thousands of Americans who work for European companies, as well as American companies operating in Europe.
As for the WTO, it took 15 years to pronounce itself on the Airbus case – which ended with a record fine for the EU – but it has yet to do the same on alleged American aid to Boeing. The ruling is expected in early 2020. At that point, even Brussels could take up the duty rifle. The risk, however, is that the US will open hostilities much earlier.
