Consumers are the biggest losers of the US-European trade war

Economy 14:15 24.06.2018
The United States imposed a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports from the European Union, Canada and Mexico at the beginning on June in a move expected to increase prices for the American consumer.
 
The EU subsequently approved a tit-for-tat 25 percent tariff on €2.8 billion in EU imports on a range of US products that came into effect on June 22.
 
European Commission chief Jean-Claude Juncker said on Thursday that the US decision to impose tariffs "goes against all logic and history", adding: "Our response must be clear but measured. We will do what we have to do to rebalance and safeguard.”
 
But EU officials seemed optimistic that shoppers on the Continent would not be affected.
 
European consumers will be able to find "alternatives", said the vice president of the European Commission for trade, Jyrki Katainen.
 
"If we chose products like Harley Davidson, peanut butter and bourbon, it's because there are alternatives on the market. We don't want to do anything that would harm our consumers," he said.
 
US products subject to new tariffs would also be chosen for their “strong symbolic political impact", Katainen added.
 
Ukrainian corn instead of American corn
 
Europe is better equipped to protect its consumers because it has a wider range of alternatives, especially for agricultural products, while the United States has limited options.
 
Europeans can turn to Ukraine, the continent’s third-largest supplier of corn, instead of depending on imported American corn, noted Wienke von Schenck, a German agriculture market research specialist,in comments to the Frankfurter Allgemeine Zeitung. China, India and Indonesia are key exporters of ricewhile Brazil and China are major orange juice suppliers.
 
The United States has also become embroiled in a trade war with almost all the major aluminum and steel exporting countries by imposing tariffs on imports from Canada, Mexico and the European Union. The move limited their options for seeking alternative sources of supply, forcing them instead to increase domestic production.
 
The poorest will be affected first
 
A chief economist at the consulting firm Harwell Management, Pascal de Lima, told FRANCE 24 that the European Commission view might be a bit too optimistic. "It may be possible to mitigate the impact on prices paid by consumers, but not eliminate it completely," he said.
 
The main organisation for German exporters warned about “a rapid rise, albeit measured, of some prices of goods in supermarkets”.
 
"If non-US suppliers had been cheaper for a similar quality, European importers would have already turned to them a long time ago," de Lima said.
 
Some Europeans think that finding alternatives for certain goods imported from the US will pose a real challenge. They fear that quality will be lower at a similar price point, or alternatives of the same quality will prove to be more costly. The situation might also inspirebusinesseswho compete with American imports to raise their own prices – while keepingthem slightly below the price of imports from the US – to take advantage of the situation.
 
Moreover, De Lima said, imported products pass through several intermediaries who pass on their customs duties before the goods arrive in supermarkets.
 
"The danger is that some do it less honestly than others and take the opportunity to increase their margin of profit somewhat on the back of customs duties," the economist said.
 
Moreover, it is the poorest consumers who will likely be the first to be affected by any rise in prices. Frankfurter Allgemeine Zeitung noted that major discount stores like large food outlets that operate with only small profit margins will also be hard hit by rising prices.
IEPF issued a statement regarding Azerbaijani children at the UN Human Rights Council

News line

Russia accuses Ukrainian military chief of ordering downing of war prisoner plane
22:10 05.07.2025
Türkiye supports firefighting operations in Syria’s Latakia
22:00 05.07.2025
UNRWA calls for immediate fuel delivery to Israel-blockaded Gaza before shutdown of basic services
21:45 05.07.2025
Pashinyan: Armenia needs new constitution
21:20 05.07.2025
UN chief condemns Russia's recent 'series of large-scale' attacks on Ukraine
21:00 05.07.2025
Kazakh servicemen arrive in Azerbaijan to participate in Tarlan - 2025 exercise
20:45 05.07.2025
Erdogan: US has crucial role in achieving ceasefire in Gaza
20:20 05.07.2025
Building collapse in Pakistan kills 15
19:45 05.07.2025
Turkish FM Fidan to attend 17th BRICS Leaders Summit in Rio de Janeiro
19:30 05.07.2025
Australia pledges $283M for green energy project by explosives maker
19:10 05.07.2025
OPEC+ speeds up oil output hikes, adds 548,000 bpd in August
18:45 05.07.2025
Inter completes signing of Ange-Yoan Bonny from Parma
18:20 05.07.2025
Turkish president sees Zangazur corridor 'as part of the geoeconomic revolution'
18:00 05.07.2025
Turkish president urges Azerbaijan, Russia to show restrain amid tension
17:45 05.07.2025
China says war 'not a solution' to Iranian nuclear issue
17:15 05.07.2025
At least 18 people injured after fire alert on Ryanair plane in Majorca as passengers abandon jet & leap from wing
17:00 05.07.2025
Azerbaijani PM meets with UNESCAP executive secretary
16:45 05.07.2025
Lebanese president affirms coordination with Syria, warns against sectarian tensions
16:15 05.07.2025
21 killed in Israeli strikes on tents, school-turned-shelters in Gaza Strip
16:00 05.07.2025
Turkish construction sector takes on international projects worth $6.2B in first half of 2025
15:45 05.07.2025
Azerbaijani woman wrestler becomes European champion
15:30 05.07.2025
Mayor: Death toll in Russian attacks on Kyiv reached two
15:15 05.07.2025
Texas floods kill 24 people and leave many missing from girls' summer camp
14:45 05.07.2025
Conor McGregor has interest in White House fight after Trump's UFC idea
14:30 05.07.2025
Netanyahu era sees 40% surge in Israeli settlements in occupied West Bank
14:15 05.07.2025
Equatorial Guinea sues France in UN court to block sale of Paris mansion
14:00 05.07.2025
US president 'disappointed' over phone call with Putin
13:45 05.07.2025
Academy of Azerbaijan`s State Security Service hosts graduation ceremony
13:30 05.07.2025
Azerbaijan and Pakistan ink memo in Khankendi
13:15 05.07.2025
Trump says there could be Gaza deal next week
13:00 05.07.2025
First flight from Türkiye to Syria launched
12:45 05.07.2025
US marks its 249th anniversary of independence
12:30 05.07.2025
Azerbaijan's role in regional integration discussed at London conference
12:00 05.07.2025
Uzbek Minister: Mirziyoyev's visit to Azerbaijan crucial for dev’t of transport links
11:45 05.07.2025
Trump says US will start talks with China on TikTok deal this week
11:30 05.07.2025
Prime Minister of Pakistan Muhammad Shehbaz Sharif concludes visit to Azerbaijan
11:15 05.07.2025
Pakistani premier proposes low-emissions corridor at Economic Cooperation Organization summit
11:00 05.07.2025
Rwanda pledges to deliver on its part of US-brokered peace deal with DR Congo
10:45 05.07.2025
Hezbollah rejects calls to disarm before end of Israeli ‘aggression’ against Lebanon
10:30 05.07.2025
Trump says Gaza ceasefire deal may come next week after ‘positive’ Hamas response
10:15 05.07.2025
Hamısı