From Irish whiskey to Italian cheese, U.S. tariffs rattle EU exporters

During the “last road in Ireland” on the rugged western coast of the country, O’Connell’s business Skellig Six18, gin and whiskey-makes the time through the Atlantic through the Atlantic during the year is a busy process.

According to O’Connell, the American was a natural target market when America was ready to sell its first souls in 2019, given a great appetite for a strong familiarity and premium drinks to Ireland. As an independent supplier, negotiations with distributors, marketers and retailers lasted for more than a year, and their first products left Kerry in November 2023 for a US launch at the beginning of 2024.

Then the political tide began to return to the White House.

O’Connell told CNBC, “In which directions, people were trying to buy a lot of products in front of the tariffs. We’ve done some of them, but now the warehouses are full, importers do not send any more and only priority large customers.”

Since the beginning of the year, President Donald Trump’s unpredictable tariff announcements are traveling to businesses of all sizes.

In particular, the European Union withdrew Trump’s fire for 198 billion euros ($ 231 billion) in goods with the United States.

He argues that tariffs are necessary to create a more balanced relationship; However, EU officials argue that trade is more between goods, services and investments and promises to increase oil and gas purchases to narrow the gap.

Last weekend, Trump announced that he was planning to hit the EU with a 30% blanket tariff ratio from August 1, after being unable to make a framework agreement for last -minute negotiations. A great uncertainty is hanging on whether an agreement can be made within the next two weeks and which details or reconciliation may contain.

Trump administration has already applied a basic tax of 10% to EU imports and for higher rates Automotives and metals.

The fact that the UK’s trade agreement with the United States maintains a 10% basic tariff with some sector exemptions caused many people to believe that this could be the best hope of Europe. Financial times Friday reported Trump is now a more difficult line in EU negotiations and forces 15-20%minimum tariffs by referring to the briefing people in talks. The CNBC report did not independently approve the report.

The EU’s trade with the US is about 30 billion euros, and the trade group Fooddrinkeurope has warned that any rise in tariffs paid by the importer will multiply European producers and farmers and limit costs for US consumers.

O’Connell from Skelig Six18, even a 10% US import tariff implemented in April, was a blow to the business.

“30% in terms of pricing [tariffs] It would be defensive. The whole situation is definitely drowning your ambitious state, “he added.

A 10% tariff for French Distillery Combier President Franck Choisne can almost be managed. Founded in 1834, Combier is known to make a triple SEC used in Margarita cocktails and represents approximately 25% of the US general sales.

However, Choisne says that 10% of the tariff came above a kick from the money market. This year, a weaker US dollar made the US to import foreign goods more expensive, which is an additional damper on demand.

30% tariff and exchange rate effects, the company’s US sales to half a level that can be reflected in the final consumer prices of 45-50%, he said.

“We understand that President Trump wants a better balance between imports and exports, but at this 30% level, of course the EU will respond to, the trade will be hit and there will be a lost situation.” He said.

Exporters of the US, such as Bourbon, would suffer, and Choisne said that at the end of the two sides, the zero tariff agreement would negotiate for the soul industry.

In the Lombardi countryside of Italy, more than half a million big wheel Grana Padano cheese overthrows the supply lines of the work Zanetti, which is operated by the family every year. The company, which also makes Parmesan and other harsh cheeses, exports more than 70% of its products and makes up 15% of a total turnover.

According to Attiliio Zenetti, President and CEO, the volatility created by tariffs this year is not different before, contradictory announcements produce large amounts of additional managers.

“It gives a lot of uncertainty and does not allow us to organize a real strategy, Bar Bar said that higher rates are trying to send as much products as possible before they come into force potentially.

Zenetti, weak dollar plus tariffs of the company’s US retail prices already increased by 25%, he said. “Further increase, of course, we are afraid that the US will directly reflect the wholesale and retail prices and affect the volumes.” He said.

For some businesses, reducing the tariff effect means looking at new supply chain options.

Accounting company Lubbock Fine and the British Chamber of Commerce in Germany Alex Altmann, some EU manufacturers to benefit from the current 10% agreement to move the assembly lines to the UK, he said. In doing so, the “origin rules” that determine the source of a product for tax purposes should be navigated in the complexity.

Altmann gave an example of a German kitchen appliance manufacturer with a strong demand in the United States, welded most of its companies from Asia and imported them to the EU at a low tariff rate. At that time, it is not difficult to shift the last assembly process to a factory in the UK, but to take advantage of 10% to take advantage of a 30% of products while entering the USA.

“We may not face this big tariff differences for a long time, but even if you earn money for a few months, it is a very important money,” he added.

Elsewhere, large companies are thinking of shifting at least some production to the US German industrial giant SiemensFor example, he told CNBC that he took steps to localize production, and the engineering group Bosch said that he gave priority to a local local model to expand North American business.