THE first rap of tariffs on the EU were announced by Donald Trump last night.
The US President slapped a 20 per cent tariff on all goods imported from the EU – which could see the price of some products in Irish supermarkets rise.
The UK escaped with just a 10 per cent tax while other countries such as South Korea, Thailand and India have seen tariffs of over 25 per cent imposed.
Describing April 2 as “liberation day”, Trump said from the White House: “It’s our declaration of economic independence”.
While the pharmaceutical industry has escaped the high taxes, a number of goods in Ireland will still get the brunt.
On top of this, the European Commission is likely to introduce further tariffs on US imports to Europe.
Consumers across the country are now becoming increasingly more concerned over how an impending trade war could impact their weekly shop.
HOW WILL IRELAND BE IMPACTED?
While no retaliation has been announced by the EU, they have proposed tariffs on the likes of American-made appliances, vehicles, tools, and day-to-day products like meat, dairy, nuts and vegetables.
These tariffs, however are not expected to be announced until a later time.
As Trump’s tariffs set in, the Irish products seeing the biggest impact will include dairy and alcohol, with the likes of Kerrygold butter and Jameson whiskey getting the hit.
If the EU hits back with tariffs of their own Levi’s jeans, Jack Daniel’s and Harley-Davidsons will jump in price.
The previously announced 25 per cent US tariffs on foreign motors and automobile parts will have a knock on impact on Irish consumers looking to buy a new set of wheels.
Those tariffs kick in today and European car brands who rely heavily on US sales could end up increasing prices of brands such as Mercedes and BMW here.
This may be in an attempt to offset loses due to a potential fall in US sales.
And this is a fear that expands across many sectors.
WILL MY WEEKLY FOOD SHOP COST MORE?
In the overall case, it’s unlikely your weekly supermarket dash will see any major impact.
While the US exports around $20 billion worth of meat and dairy globally, not much of those exports are to the Irish market.
The vast majority of meat and dairy on supermarket shelves in Ireland has come from Irish farms, with the majority of foreign imports coming from the UK or mainland Europe.
Canada, Mexico and China lead the way when it comes to US exports in this area.
However, while these are somewhat safe, nuts, fruit and vegetables may see a different story.
Nuts are not typically grown in Ireland, the US is one of the biggest exporters of tree nuts like almonds, pistachios and walnuts.
Spain is the second largest exporter of almonds while Turkey takes the second place in pistachios after the US.
While nuts sold in Irish stores may not come from the US, the price is influenced by the US market and due to production of these lower than the US, nuts will likely see prices rise or quantity drop – the same is true for soy beans.
When it comes to fruit and vegetables, the majority produced in Ireland will be safe but products like avocados, sweet potatoes and oranges could be hit.
Mexico, the Netherlands and Spain also produce these products but the US is a major global supplier.
Demand here for these could see prices increase or supply fall when tariffs are imposed.
WHAT ABOUT DRINKS?
Despite the brand being from the US, many American drinks companies make their products in Europe.
The likes of Coca-Cola and Budweiser are among these and won’t see major impacts on our shelves.
If the EU impose tariffs on the US, products like Californian wine or bourbon, which legally must be made in the States, will see a hit.
Prices for these will rise and possibly face limited supply.
Brands like White Claw, Sierra Nevada and Jack Daniels are made in the US and could see damage on the Irish market.
Irish brands such as Jameson, Smithwicks and Guinness are set to be impacted as the supply and cost of the brands could see rises on the US market.
Guinness, however, might not be the worst hit of Irish alcohol exports as a brewery was opened in Baltimore in 2018.
WILL OTHER COSTS BE DRIVEN UP?
The European Commission has hinted it would place tariffs on wood and plastic on top of the steel and aluminium that has been introduced.
Many products made outside of the US use American-imported machinery or packaging.
If tariffs are placed on these raw materials, and maintenance is needed on the appliances making products, goods could see an increase despite not coming from the US.
The majority of a weekly shop should stay safe[/caption]
