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Trump's jam war is canceled

2020-08-21T11:10:42.687Z


US President Donald Trump wanted to take revenge for unlawful EU aviation subsidies with punitive tariffs on German jam. But the manufacturers of fruit spreads are hardly affected.


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Photo: Getty Images

The attempt by US President Donald Trump to damage the German jam industry with punitive tariffs is likely to come to nothing. From September 1st, the USA will raise an additional 25 percent on fruit jams from Germany. However, this will hardly affect the industry. Last year only two percent of the jam produced here was exported to the USA.

The Schwartauer Werke, for example, generate 80 percent of sales in Germany. Although business in the US is becoming "significantly less attractive" due to the rise in prices, the US is only a small market, as the company told SPIEGEL on request. The largest export market is in South America.

"Not threatening, but annoying"

The Aachen-based manufacturer Zentis states that it will not be affected by the punitive tariffs; Zentis does not sell classic jams for end consumers in the USA. Zentis' export business relates to "fruit preparations for the processing dairy and baking industry". Zentis manufactures a large part of it "at two locations in the USA". Industrial fruit preparations "that are exported from Germany to the USA are currently not affected by the punitive tariffs," says Zentis.

"For companies, the punitive tariffs are not threatening, but very annoying," says Christoph Freitag, managing director of the Federal Association of the Fruit, Vegetable and Potato Processing Industry (BOGK). Last year, jam exports to the United States rose by 22 percent. This dynamic growth is also likely to be the reason the spreads landed on the United States' criminal tariff list.

The cause of the customs dispute is a ruling by the World Trade Organization, according to which years of EU subsidies for the aircraft manufacturer Airbus were illegal. In return, the US is now levying fines on EU products.

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Source: spiegel

All business articles on 2020-08-21

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