Post Reply - trade war

   https://www.gld.nl/nieuws/8294387/trump-dreigt-met-heffingen-zutphense-wijnboer-voelt-het-meteen or https://www.gld.nl/nieuws/8294387/trump-dreigt-met-heffingen-zutphense-wijnboer-voelt-het-meteen ;Trump threatens with tariffs, Zutphen winegrower feels it immediately 
ZUTPHEN - "The containers were already ready in Spain," says wine merchant Derrick Neleman from Zutphen. "But now they are coming back to our warehouse, because exports to America have come to a standstill." Due to the announced import duties from the United States, his wine is in danger of losing the American market — and with it years of work.
Wine merchant Derrick Neleman from Zutphen has a problem. His company, Neleman Organic Vineyards, sells organic, vegan wine made on a vineyard in Spain. From his warehouse in Zutphen, he sells wine in the Netherlands through his webshop. It is located in various supermarkets and specialty shops. From Spain, the wine is exported to about thirty countries. Until recently, this included the United States. That export has now come to a standstill.
"The containers were ready to be shipped in Spain, but now they are coming to our warehouse in Zutphen," says Neleman. The cause? Due to Donald Trump's announced import duties, American buyers are canceling their orders from the winegrower. "That's really annoying."
What are import duties?
Import duties make products from abroad more expensive. Companies that buy these products have to pay additional taxes, and those costs are often passed on to the customer. It will then become cheaper to make products in your own country.
US President Donald Trump has already introduced import duties on steel and aluminium, to which the European Union (EU) responded with its own import duties on American products. This creates a trade war: countries make it difficult for each other with extra taxes on each other's products.
A basic levy of 10 percent applies to all countries. But some countries are getting a little bit more. At the EU, there is sometimes another 10 percent on top of that.
'Idiotic policy'
For the past three years, Neleman has invested in the American market, even the export director has moved to the United States. "That takes time and energy," says Neleman. "If nothing or little goes that way now, you have thrown away three years." There are also mixed messages from their American trade relations. "They are also at a loss, because they have also invested in us for three years. But they cannot and do not want to pass on those huge levies to the customer," says Neleman.
"Trump is a blessing for my profession," says Albert de Vaal, senior lecturer in international economics at Radboud University. "But from an economic perspective, this is completely ridiculous. Trump is just pursuing idiotic policies." Trump himself says that he mainly wants to protect American producers, but he does not succeed in this way, says De Vaal. "American companies also often use parts from other countries for their production, which also increases their costs." This affects not only companies that supply directly to America, but the entire production chain.
What does the customer notice in the wallet?
Those higher costs will not be too bad for now, De Vaal thinks. So what will the EU customer notice in his wallet from these high rates? Not that much yet, according to De Vaal. "The great thing is that the European Union has not yet taken any countermeasures, so products from America still arrive at about the same import tariffs. Those rates are usually low, on average 4 to 5 percent."
However, as a consumer you may pay more than before: "For example, if you order a table from America that is assembled with screws imported from China, those screws have become more expensive. Then your table can also cost more.
DJ, The article had a photo of Mr. Neleman with a shirt; "Make wine not war"...See also https://www.neleman.org/en/ or https://www.neleman.org/en/ (Maybe he will lower the price now the US market seems closed..even for "close friend NL"). 