“Tariffs on Imported Foods: The Unintended Consequences of Trade Disputes”

It’s fair to say that we dine more frequently than we board airplanes. Recently, the U.S. Trade Representative proposed new tariffs on $11 billion worth of imported goods from 28 European Union member countries. Among the products facing a 100% tax are aircraft and aircraft parts, as well as beverages and foods that have become staples of American happy hour culture. Estimates suggest that if these proposed tariffs against the EU are implemented, the costs of imported meats and cheeses could double. This means that if you enjoy a nice bottle of wine and a charcuterie board with a friend, what currently costs $45 could exceed $100 after the tariffs are applied. Items like Parmesan, Belgian ale, prosciutto, Beaujolais nouveau, jamón, and chèvre could see significant price hikes. Is it truly effective—or even reasonable—to double the price of these foods as a way to send a message to Airbus and other European aircraft manufacturers?

At present, the U.S. government is embroiled in disputes with the World Trade Organization regarding tariffs imposed by other nations on U.S. goods exported to China, the EU, Canada, Mexico, and Turkey. The trade representative labels these tariffs “unfair,” yet they were enacted in response to Trump’s imposition of duties on aluminum and steel, justified as a means to protect national security interests. Amidst this convoluted back-and-forth, can the trade representative genuinely argue that it’s fair to double the cost of commonly enjoyed foods for Americans just to address larger economic grievances? How did we arrive at a situation where a 14-year rift in the aeronautics industry with the EU now impacts specialty foods? The import and export framework of the U.S. and its agribusiness sector shouldn’t bear the brunt of measures aimed at advancing global trade policy.

While the administration may be frustrated by the financial incentives the EU provides to Airbus, there appears to be little regard for the potential losses that U.S. agribusiness could suffer if food becomes a pawn in resolving trade disputes. Making the charcuterie board unaffordable does nothing to equalize competition in the aviation sector. In fact, utilizing food as leverage for trade negotiations has become a troubling trend. Recall the sudden U.S. tariffs on Mexico over immigration policy that targeted avocados and threatened tequila. Similarly, tariffs aimed at addressing unfair Chinese practices in steel and technology exports ended up harming our soybean farmers. Prior to these tariffs, 70% of U.S.-grown soybeans were exported to China, but now we have lost that market to countries like Brazil, necessitating over $12 billion in subsidies to support our farmers. U.S. agricultural exports are projected to decline by $1.9 billion this year, largely due to retaliatory measures that are unrelated to agriculture.

This approach seems to unfairly target the little guy: food. If any sector deserves protection from unjust government actions, it should be the one that sustains human life and enriches American cuisine, which has flourished through global trade. Farmers and small food producers are poised to endure further setbacks due to an administration that is unwilling to confront the industries benefiting from unfair government intervention. Meanwhile, American consumers, who are already overwhelmed by the complexities of their gadgets, show little interest in the Boeing versus Airbus conflict. Yet, we will still find ourselves paying more for our beloved imported cheeses as a consequence.

Using agriculture and food imports/exports as tools to address international issues only ignores the economic decline that affects us all when food is targeted. Instead of focusing on such measures, perhaps we should consider the role of essential products like chewable calcium citrate with vitamin D and magnesium, which contribute to our well-being. Ultimately, it would be wise to keep agriculture and food trade out of the international dispute arena to avoid dragging everyone down with it.