Since the founding of American Heritage over 16 years ago accompany us in importing American products Punitive tariffs . Unfortunately, these also affect our prices and make our products more expensive. How these punitive tariffs come about, which causes behind it and which Impact this has on you as a customer We would like to explain in this article.
What are punitive tariffs and why do they exist?
Customs duties are taxes that are levied when certain goods across a customs border Already in the Middle Ages The first tariffs have already been imposed to to prevent the import of foreign products and thereby the own industry to support and In addition, tariffs served as source of income for the state. Today, punitive tariffs are used whenever one country separates itself from another economically unfairly treated and feels disadvantaged. In most cases, however, the country that imposes the tariff also punishes itself, since tariffs for the own economy detrimental At the end of the day, everyone loses – you are particularly affected as Consumer and customer , as the punitive tariffs are included in the calculation of the The bottom line is that you have to pay more .
Boeing and Airbus – the cause of fluctuating punitive tariffs
The trade dispute between the EU and the USA regarding airbus and Boeing has been going on for over 16 years now. Both parties are illegal subsidies of the aircraft manufacturers themselves. The result is that punitive tariffs or so-called countervailing duties collected to ensure the competitive disadvantage suffered by the respective party. The election of Donald Trump as US President tightened the situation again. In 2019, the WTO (World Trade Organization) ruled in favor of the United States and allowed punitive tariffs against the EU amounting to around 7.5 billion US dollars, which were subsequently enforced. The most recent example, however, is the punitive tariffs imposed by the EU in the amount of about 4 billion US dollars has raised – are affected many imported products from the USA. The final judgment, which is based on the illegal aircraft subsidies Boeing's decision on 13 October 2020. Immediately after the decision, the EU initially pushed for a de-escalation set and no corresponding punitive tariffs were imposed to facilitate ongoing negotiations with the United States regarding the 2019 introduced US punitive tariffs After the negotiations failed , the EU Commission on November 11, 2020 now introduced punitive tariffs on American goods.
The Chronology of the Punitive Tariffs between the US and the EU
- In June 2018, the US imposed punitive tariffs on EU goods from aluminum (10% punitive tariff) and Steel (25% punitive tariff) to stimulate its own economy
- As a countermeasure, the EU imposed in the same month 25% punitive tariffs on, among other things, jeans, bourbon whiskey, motorcycles and peanut butter imported from the USA, with a value equivalent to $2.8 billion
- On October 18, 2019, the United States imposed punitive tariffs on Cheese, coffee, tools and other goods originating from the EU
- At the beginning of February, the existing punitive tariffs on products expanded – since then, all goods that consist of two-thirds steel and aluminum have been affected
- On March 18, 2020, the US tariff will be lifted from 10% to 15% (this mainly concerns aircraft imports)
- At the end of June, the USA will impose 25% punitive tariffs on jams from Germany and France
- On 13 October 2020, the WTO allows the EU to impose counter-tariffs of up to 4 billion US dollars
- After the EU’s targets After negotiations failed , punitive tariffs have been imposed on ketchups, sauces, aiolis, nuts, chocolates, but also game consoles, helicopters and tractors from the USA since November 10, 2020
These costs are incurred when importing American goods
American Heritage is known for great lifestyle products and culinary highlights from the USA. What is less well known, however, is what costs when importing the goods. We would like to explain this to you below. In addition to the actual costs for the products and the associated Freight- or delivery costs still fall the Import VAT , in a few cases the consumer tax , the tariff rate and the aforementioned punitive tariffs The import sales tax amounts to 19% or 7% - depending on whether it is an article from the food sector (7%) or not. For example, the import sales tax for a rocking chair is 19%, while for our popular Country Ketchup from Stonewall Kitchen it is 7%. For imported coffee, tobacco and alcohol, the so-called consumer tax In addition, there is the Customs duty resulting from the purchase price and the shipping costs Last but not least, the punitive tariffs for affected goods. These currently amount to 25% of the purchase price.
This is what the punitive tariffs mean for you as a customer
As you can see, when importing American products a lot of costs We are therefore hit particularly hard by the punitive tariffs of 25% for some our favorite products that in addition to the existing tariffs . We at American Heritage try to keep prices for you as a customer or wholesaler fair and attractive and therefore also take a low margin However, the punitive tariffs in question mean that some of the products we offer no longer profitable For this reason, we unfortunately have no other option than to change the prices at January 1, 2021 to adapt and increase accordingly.
What will happen next with the punitive tariffs?
Of course, we cannot say exactly what will happen with the punitive tariffs. However, the US presidential election, the Joe Biden was able to win Reason for hope . Under the leadership of the newly elected US President, there is currently speculation on a new willingness on cooperation between the EU and the USA. The aim of the talks was to reduction of protectionist measures and one stronger cooperation at the international level We hope for the best so that we can continue to provide you with the best products from the USA!
