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A TRADE ROW has started between the EU and US that will see the price of a number of products imported into Europe from American manufactures drastically jump.
President Donald Trump last night issued a 25% tariff on steel and aluminium.
It will likely add to the cost of producing various goods from home appliances to cars and cans used for drinks, threatening to raise US consumer prices down the road.
The taiff means for every $10 worth of the metals from Europe, the US tariff will add an extra $2.50 in tax onto import cost.
In response, the European Commission announced “countermeasures” in response to what it called the “unjust” US tariffs. This will have an impact on a range of goods from the US and likely lead to price increases in Ireland and Europe.
A tariff package, first placed on the US in 2018 before it was scrapped in 2023, will be re-enacted on 1 April. Further measures may be introduced on a later date, though the Commission hopes the row can be resolved before the first round is enacted.
Europe’s new tariffs range from 10% to 50%, targeting a total of €26 billion worth of American goods. So, what US products are likely to see price increases in Europe?
Agriculture products feature frequently in the 2018 measures. The EU is considering a 25% tax on US imports of vegetables, rice, grain, fruits and nuts, according to the 2018 document.
An additional 50% tariff has been placed on agriculture equipment as well as the components that are used to build those tools, including tractors.
Very few agri-food imports into the EU come from the US, according to the latest report from agriculture directorate in Brussels. Overall food imports reached a record-high in October last year, with a value of over €16.6 billion.
Most of these imports (€14.4 billion) came from Brazil, in the form of oilseed and cereal. A large volume of cocoa was also imported into EU member states from Côte d’Ivoire.
Despite the US making up only a sliver of agricultural imports, farmers in Ireland might see the cost of exporting their goods into the US increase.
The country was the second-most-valuable trading partner with the EU, after the UK, for the agri-food sector last year.
At home, farms may see American-made tractors and agriculture equipment increase in price after 1 April but it’s unclear how much of an impact this will have. This is because many firms behind these products have set up EU-based hubs in recent years.
Separately, according to the most-recent report on tractor and machinery imports into Ireland, published in January, rates of imports from everywhere outside of Ireland have dropped by 11% in the last 12 months.
Because of this, the price of tractors will likely not be impacted by the full extent of US tariffs as the equipment can be made within the EU and market activity and demand seems to have fallen.
For consumers, Irish supermarkets mostly sell locally-produced fruit and vegetables. The vast majority of imported products on Irish shelves do not come from the US either.
As a result, the price of the majority of produce and other food-stuff will remain largely the same.
American-made clothes, such as the trademark-blue jeans and sportswear, will be subject to between 10% and 25% tariffs under the 2018 measures set to be re-introduced next month.
This will increase the cost of t-shirts, jeans, jackets, football boots and other sports equipment from the US, as they may receive a 25% tax upon arriving on European shores.
A 50% may be placed on suit jackets, pants and other components of formal wear.
US-made apparel, according to a report published last year, are the least-imported internationally-made clothing in the EU. Between 2002 and 2023, rates remained below 10% and did not increase.
Meanwhile, America is the third-largest importer of European-made clothing. The majority of clothing imported into the EU comes from China, Bangladesh and Turkey, including those famous blue Levi’s.
Alcohol and tobacco products are most likely going to be impacted by 25% tariffs come April.
Previous tariffs placed on American alcohol and tobacco led to distributors and importers of the products taking a major hit. Separately US whiskey producers lost enormous amounts of sales in EU markets at the time.
Following the end of tariffs on US-made alcohol in 2023, exports from America to the EU increased by 8%.
The EU has threatened before to place 50% tariffs on American whiskey, which is the most-prominent type of alcohol important into Europe from the US.
As a result, brands such as Jack Daniels and imported cigarettes such as American Spirit may increase in price.
The EU has threatened to place a 25% tariff on makeup, cosmetic and skincare products.
This includes things such as eyewear and spectacles – for example designer or specifically made frames – as well as powders, lipsticks, face cleansers and other types of makeup and skin creams.
Advertisements for American made makeup products and cosmetics have increased in recent years across Europe, particularly in Ireland.
The price of such products are usually quite high, because to the associated costs with importing the goods. These goods are also sold at a premium due to the strict regulations that EU has on cosmetic items.
A number of stores and distributors will purchase and import the products in bulk, to offset premiums. The tariffs, which could reach up to 50%, may further increase consumer prices.
A 25% tariff on iron, steel, aluminium and other materials were included in the 2018 measure. Is also included tariffs and additional taxes on construction equipment including clothing and other machines used on building sites.
Latest figures from Eurostat, published today, revealed that the EU exported €8 billion worth of iron and steel to the US in 2024. The American manufacturing industry was the largest importer of European iron and steel last year.
On the opposite end, the EU imported the majority of its iron and steel from China, €12.5 billion worth. The US was the fourth largest exporter of iron and steel in the EU last year, with trade worth just over €3 billion.
These materials are used for for a number of products including cars another motor vehicles as well as drinking cans.
It is likely that car prices will increase, not only due to the tariffs on the metals but also due to additional taxes on the type of tools and parts that are imported from the US and placed into vehicles here.
However the most-likely impact seen by European consumers at the tills will be to drinks cans another food cans.
The extent of this impact is not yet known, however, as a number of major mineral companies and alcohol producers, which use drinking cans, have manufacturing hubs as well as distribution centres located in Ireland and around the EU.
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This is the same agency that gave us AAA status in the boom times. S and P Moodys and Fitch should be regulated much tighter than the are. They have huge conflict of interest with their business practices.
AAA rating from S&P is like the kiss of death to any country or company
Ah the reason Ryanair has been buying back it’s shares revealed.
Has to do something with its vast profits!
O shit, that’s the end of Ryan air, sell sell sell WTF has happend
“Michael You’r The Man” ……. how about RyanMed …….. fly me out of here … to an airport near a Hospital without waiting lists. Gladly join a OneBigSwitch to RyanMed.
The world can give Ryanair just whatever they want. I still will never ever put my feet inside one of their planes.
have your say