Who's hit by tariff war crossfire? Wine, plastics and pulp top list of sectors

EU tariffs on American products are adversely affecting EU manufacturers of wines, plastics and pulp among other sectors relying on imported products hit by tariffs or caught as collateral victims of the trade war between both sides of the Atlantic.

The wines and spirits sector was among early casualties, hit on Wednesday by the US President's threat to impose 200% customs duties on imports in retaliation against EU tariffs on Bourbon whiskey.

“For several months now, we have been proposing that the European Commission adopt a positive approach towards the United States, based on reciprocity, to safeguard bilateral trade in wines and spirits,” Gabriel Picard, president of the French Federation of Wine and Spirits Exporters (FEVS) said, adding: “By including American wines and spirits in its retaliatory measures, we end up wondering whether the European Commission wants our industry to die.”

In response to the 25% US tariffs on steel and aluminium, the European Commission on Wednesday presented retaliatory measures against a list of products imported from the US, ranging from soy beans and wood to Harley Davidson motorcycles and Bourbon whiskey.

Wine and spirits representatives point out that they have already borne the brunt of EU trade wars, including the recent spat over electric vehicles with China, which saw the latter counter European tariffs with customs duties on European brandy.

The European pulp and paper industry has also reacted after seeing imports of the products from the US on the EU list. The EU imported €962 millions' worth of pulp and €650 millions worth of paper and board from the US in 2023. In exchange European exports of pulp and paper and board were worth €238 million and €2.4 billion respectively. The sector has no interest in a trade war with the Americans.

Jori Ringman, Director General of the Confederation of European Paper Industries (Cepi) told Euronews that “EU and US consumers who need basic hygiene products” were going to be impacted as well as “a whole range of sectors using paper packaging.”

The trade association is scrutinising the reciprocal customs duties announced by the US President, which they fear the sector could fall victim to, and is readying to respond to the consultation launched by the European Commission on the list of American products targeted by European retaliation measures.

The list of products presented on Wednesday is open to consultation by industry representatives until 26 March. It will then be submitted to EU member states, who will be able to object to it. The Commission is aiming for entry into force in mid-April.

The plastics sector, targeted by European countermeasures, is also calling for peace. “The imposition of tariffs, particularly on industrial goods such as plastics, will disrupt supply chains, raise costs for businesses, and negatively impact consumers on both sides of the Atlantic,” Virginia Janssens, Managing Director at Plastics Europe, said in a statement, calling for “free and fair trade” between both sides of the Atlantic.

In 2023, 11.7% of EU exports of plastics went to the US (valued at €3.4 billion) and 22.2% of EU imports of plastics came from the US (valued at €5.3 billion).

The medical devices industry is also concerned to see components used in its sector affected. “We respectfully urge the EU to ensure that medical technologies and their components are excluded from any retaliatory tariffs,” Medtech Europe said in a statement, adding: “Ensuring uninterrupted access to these essential products is crucial for maintaining patient care and supporting the resilience of healthcare systems across Europe."