The European Dairy Association has criticised the US government’s introduction of tariffs on a wide range of EU goods, with Alexander Anton, secretary general, describing the tariffs as “unjustified”.
“EU dairy exports – most notably cheese – account for less than 2% of total US domestic consumption,” he commented. “These cheeses serve a very unique market segment in the US, offering choice and excellence to US consumers, and therefore do not compete directly with American dairy products.”
The Trump administration’s so-called ‘reciprocal tariffs’ risk harming both EU exporters as well as American businesses and consumers, the EDA, which represents dairy processors in the European Union, added, reducing access to high-quality dairy products.
This, in turn, could drive up prices for dairy products in the American market.
Trade balance ‘in equilibrium’
“Not only have the USA and the EU the largest bilateral trade and investment relationship and the most integrated economic relationship in the world, but the overall (goods & services) US–EU trade balance is basically in an equilibrium – this is an ideal basis for a prosperous trade relationship,” Anton added.
“A trade dispute between the US and the EU therefore is clearly in the lose-lose category.”
‘Enormous pressure’
The EDA chief added that the timing of the US decision couldn’t be worse for Europe’s dairy sector, which is already under “enormous pressure” due to China’s anti-subsidy investigation and ongoing global market challenges.
“Now, US tariffs risk compounding that crisis,” he commented. “This is a blow to rural economies across Europe—and to the spirit of fair and rules-based trade.
“Trade policy must be smart, not punitive. Dairy is not the problem here – using it as a pawn only creates new problems on both sides of the Atlantic.” Read more here.
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