How tariffs on EU goods could affect US consumers

Over the weekend, the United States and the European Union unveiled a new framework for their trade agreement.

Instead of the previously suggested 30% rate, it imposes a 15% duty on the majority of items imported from the EU.

Last year, the United States imported $605 billion worth of goods from the 27-nation bloc.

Although the agreement’s specifics are still unknown, it could significantly affect the cost of products like pharmaceuticals and cars built in Europe, which could then be passed on to customers.

Certain products, such as airplane parts, specific chemicals and generic medications, and some agricultural products, will not be subject to any tariffs.

However, a lot of companies, notably the alcohol sector, are still unsure about how the deal would affect them.

Chris Swonger, CEO of the Distilled Spirits Council of the U.S., stated, “We are very hopeful that the 15% tariff is not applied to distilled spirits.”

Any tariff, he claims, would raise prices.

“Any tax on distilled spirits products or a tariff on distilled spirit products are going to impede on that consumer being able to afford that special bottle of scotch or cognac.”