Where the European Union’s tariff will be the most difficult hit


Mark Makela | Getty Image News | Getty images

Recent data on tariffs and consumer decision making is clear: increase prices on a product due to high import taxes, and consumers will turn into a cheap option.

This is not well for some American products, and for states where they produce, as the US and the European Union are engaged in tight-for-tat tariff threats. Think from Michigan to California almonds, Tennessee whiskey and rearview mirror.

From 2017-2019, Tennessy Whiskey’s exports fell from $ 362 million to $ 220 million in the European Union’s first term of Donald Trump’s trade war, and according to a recent research report of the trade partnership, the export remained low until the Anti-Anti-Retan Tariff was suspended. The 2018 Trump Tariff was suspended by the Biden administration in January 2022.

Daniel Anthony, president of the trade partnership, said, “Once the European Union lifted the tariff, Tennessy’s exports increased by 42%.” “But Tenasi exporters know how vengeance can reduce sales again.”

On Thursday, Trump threatened 200% tariff on European Union’s liquor and alcohol, and said “he talks about tariffs on imports of other countries,” he is not going to bend at all “. His Treasury Secretary, Scott Besent told CNBC that he does not understand why the market would do a big deal with this danger, but for some American Unions, the European Union is a big market for some American states.

Unlike the tariffs imposed by the Trump administration, where the US ships have to pay tariffs to achieve their products, mutual tariffs will be imposed on American exports paid on US exports. High prices can either reduce demand or close a market.

Anthony said, “Hopefully a hope companies will lose sales as consumers of the European Union change less expensive options.”

Data compiled by trade partnership Worldwide suggests that the value of American exports that may be subject to tariffs will increase five times, exceeding $ 27 billion from $ 6 billion (based on the original trump tariff).

“This is a major tariff expansion on previous exports,” Anthony said.

The European Union’s anti-counter-tariffs have been set in two installments-the products have been hit the last time which is being replaced again on 1 April, and then the expansion of additional products, subjected to further discussion, which can be implemented in mid-April.

Depending on the percentage, new analysis on the ventilative tariffs of the European Union suggests that New York and North Dakota companies are potentially the highest part of exports in vengeous crosshair, which can affect demand on their goods: New York (39%), North Dakota (36%), Nebraska (32%), Ayova (26%), and West Vishwania.

Depending on a full dollar, some states with major ports and some states on the banks of the Gulf are among the top states facing the tariffs of the new European Union, including New Jersey, Georgia, North and South Carolina, Virginia and Texas. The products of these states range widely, from popper to drinking alcohol to tobacco and tobacco products, peanuts, frozen and fresh orange juice, edible oil, motorcycles, dishwashers, clothes, shoes, furniture and carpets.

Treasury compress. 200% of the European Union's alcohol tariffs on the threat: 'It's not sure why this is a big deal for markets'

But Anthony stated that it is Michigan’s California almonds, Tennessee whiskey and rearview mirrors standing as some of the best examples of intense risk and market needs – “European Union is the largest buyer of these products and an anti -anti -tariff will cause great damage.”

Brandon Daniel, CEO of Corporate Risk Management Consultant Acigger, said that the counter -European Union tariffs keep American whiskey producers in a sufficient competitive loss.

“States such as Tennessee and Kentki, whose economies depend well on this luxury export, will feel rapid economic pressure. This is where politics and business policy collides at this time,” Daniels said.

File Photo: Whiskey Barrel is placed on a truck in Jack Daniel Dystillary in Lynchberg, Tennessee, US February 3, 2025.

Kevin Varam | Roots

Tenasi’s companies exported $ 575 million to the European Union in 2024 (66%of its exports to the world).

In 2024, California exported $ 1.2 billion to the European Union in almonds. The European Union represents 37% of California exports to the world.

Outside Michigan, companies exported $ 519 million to rear-view mirrors to the European Union in 2024 (48%of its exports to the world).

In the auto sector, companies have more space to interact.

“In the previous tariff struggles, we have seen that the American exporters of important motor vehicle components – such as Michigan’s accurate electronics – often partially partially absorb anti -anti -tariff costs,” said Daniel. “While the required components will continue to flow, American producers usually share tariff pain with their European buyers, as neither a side alone can tolerate the entire cost alone. This shared burden highlights how the automotive supply chain is actually connected.”

Red states will feel pain beyond whiskey states

In the world of manufacturing, Molibdenum, which is used in steel, lubricant, production of pigments, and as a catalyst in the petroleum industry, is a large export to Arizona for the European Union. In 2024, Erizona exported an export of $ 304 million to the European Union (89% exports to the world) into Molibdenum.

South Carolina exported $ 223 million to the flexible polymer ethylene Copolmer in the European Union in 2024 (59%of its exports to the world). This chemical is used in packaging, hot-melt adhesive, motor vehicle components and construction materials, as due to its durability, flexibility and adhesive properties.

Several other plastic resins also topped the list for South Carolina, and West Virginia, where companies exported $ 146 million to the European Union in 2024 in plastic resins (59% of its 59% exports to the world).

In some areas, current American trade imbalance will affect interaction.

With a record goods trade deficit of about 236 billion dollars in 2024, the US depends on Europe for high-value-made goods such as vehicles, pharmaceuticals and industrial equipment. But these are areas where American negotiators have meaningful benefits through the targeted tariff, Daniel said.

European vehicle manufacturers exported vehicles worth about $ 54 billion to the US in 2022, dwarfing US motor vehicle exports to the European Union. A targeted American tariff in the region will put significant pressure on European manufacturers – especially Germany, whose auto industry alone consists of more than 30% of Europe’s total exports in the US, he said.

According to prolonged customs data by EXIGER, pharmaceuticals represent Europe’s largest export category in the US, about $ 92 billion annually.

“While the target can be politically fragile to target pharmaceuticals through tariffs, it will directly affect European pharmaceutical giants, causing strong incentives to interact for Brussels. However, although Trump announces that Trump announced that 200% increase on alcohol and alcohol.

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