Trump’s tariff war on China has gone so well that he wants to open up a second theater of war with those dastardly Europeans. And he wants to nail their fine cheeses and olive oil!!!
The Trump administration has proposed a tariff of up to 100% on $25 billion in European items. Romano, Parmesan, provolone and Gouda are all on the list. But it’s not just cheese. The tariff is proposed to hit a variety of items that pair well with cheese, as well — like wines and meats, olive oil, olives and pasta.
While Trump’s tariffs against China threaten to raise prices on an array of consumer goods, this lesser-known trade dispute has cheese lovers up in arms and cheese sellers like Lou Di Palo worried about how potential new tariffs could hurt sales.
Di Palo says the tariff could hit about 95% of the items his store sells, and he’s skeptical that customers will pay double for everything. He plans to take a hit to his profit margins rather than raise prices to cover the cost of the tariff.
BOOM! More winning!!
Oh look conspiracy-elvis has an opinion:
Of course Europe hates Trump's tariffs on China. China was the conduit through which Europe was stealing American wealth.— Bill Mitchell (@mitchellvii) September 6, 2019
Now, it turns out that the tariffs have nothing to do with fine European cheeses and olive oils. They have to do with aircraft manufacturers!
The kicker for Di Palo and other importers is that the trade dispute has nothing to do with food. Instead, it’s part of a 15-year-long issue over subsidies for aircraft makers Boeing and Airbus. Both the US and the EU have been found at fault — and both are threatening tariffs on a wide range of other goods in retaliation. It’s up to the World Trade Organization to determine the scope of allowable duties. A decision is expected sometime this month, and it has importers on the edge of their seats.
Now, critics of el Trumpo say that it is the consumer that pays tariffs, and it ends up being a tax. Trump says NO that China ends up paying it themselves. Normally, it does hit consumers, but, as I understand it, there IS market manipulation that China can pull so that it takes on some of that tariff hit and it doesn’t go to the consumer as badly. And this puts pressure on China to sign a deal with Trump.
In theory, it may work. We have yet to see if it will work in reality. AND I have to think that the Europeans are less likely to pull such a maneuver, which means that the consumer WILL have to pay a tax on those items. Maybe he can get the Taliban to pay for it…
That’s it for Sunday, we hope your NFL teams did as well as ours did. El scoopy has the Dallas Cowboys and I have the Buffalo Bills, so we’re riding high. Y’all have a good week now, you hear?