Friday, March 9, 2018
Berry bad Cranberry tariff
Cranberries have joined Harley Davidson on the list of items created by the European Union that may be given tariffs because of President Trump's tariffs on importing aluminum and steel. The EU is the largest importer of Cranberries and Wisconsin is the world's largest producer of Cranberries. President Trump pledged that imported steel would receive a 25% tariff and imported aluminum would receive a 10% tariff. The U.S. exports more than 95 million pounds to the EU every year. The U.S. exports 40% of their domestic cranberry production and some years, Wisconsin produces over half of the total cranberry production in the U.S. If the tariff is implemented, Wisconsin cranberry growers say it will impact their prices greatly and cause the EU to buy more cranberries from Canada instead. Canada and the EU do not have a duty set up for Cranberry trading. The EU has not released what their cranberry import tariff would be but in some countries, the cranberry import tariffs are as high as 17%. We will have to see what happens in the coming weeks on whether or not the EU will impose these tariffs.
https://www.jsonline.com/story/money/business/2018/03/07/wisconsin-cranberries-european-union-target-list-retaliation-tariffs/403654002/
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I had no idea that Wisconsin was the world's largest cranberry producer with exports of 40%. It makes sense now why they hold Cranberry Fest every yaer. I understand why Trump wants to create a teriff, but it makes me nervous of what it's going to do to the cranberry farmers in Wisconsin. Any sort of farming is not only a means of income, it's a lifestyle.
ReplyDeleteGreat post, Matt! Keep following this one. 95 million pounds of cranberries translates to about 19 million in revenues. Have you looked at the amount paid by consumers in Europe and what a tariff might do to prices there?
ReplyDeleteMatt,
ReplyDeleteI really enjoyed reading your blog post. I had no idea that Wisconsin is the world's largest producer of cranberries. I found that to be super interesting. I have attended the cranberry festival in Wisconsin a few times and it makes sense why we have a festival for cranberries. Awesome post I am excited to read more of your blog posts.
It's interesting to try to rationalize a tariff on cranberries, which does not seem like a huge industry, but undoubtedly supports a large part of the Wisconsin population. I was especially surprised to read that some countries have cranberry tariffs as high as 17%. That just seems outrageous.
ReplyDelete