EU slaps tariffs on U.S. cranberry concentrate
Tariffs imposed by the European Union on Friday will apply to less than one-third of the U.S. cranberry products sold to the 28-country trading bloc, but will still hurt, according to The Cranberry Institute, an industry group,
The EU put a 25 percent tariff on cranberry concentrate. The EU did not, however, extend the tariff to sweet dried cranberries, a product that has enjoyed duty-free entry to Europe since 2011.
The U.S. cranberry industry sells $127 million worth of products annually to the EU, its largest foreign market. Cranberry concentrate, a by-product of making dried cranberries, makes up $41 million of that, according to the institute.
“Tariffs on U.S. cranberries will be very detrimental to our industry,” the institute’s executive director, Terry Humfeld, said in a statement.
The cranberry industry has become caught up in emerging trade wars between the U.S. and trading partners. U.S. cranberry products face retaliatory tariffs from China and Mexico, as well as the EU.
The U.S. is the world’s top cranberry producer, but annual domestic consumption has been stuck at just under 2 pounds per person for many years. About one-third of the U.S. crop is exported, according to the USDA’s Foreign Agricultural Service.
Humfeld, who was unavailable for an interview Tuesday, said in the statement that the U.S. cranberry industry has spent decades cultivating the European market. He said the tariff may hurt Europeans.
“Since there is no domestic cranberry industry in the EU, costs could increase for manufacturers, leading to higher prices for consumers or reduced access to cranberries,” Humfeld said.
Canada, the second-largest cranberry producer, appears poised to fill the demand. Canadian cranberry production doubled between 2006 and 2017, according to the USDA. Canada and the EU signed a trade agreement last fall that removed tariffs on Canadian cranberries. The deal eliminated an advantage the U.S. had enjoyed. The EU suspended duties on American sweet dried cranberries imported to use as ingredients in 2011. Exports to Europe then surged, according to the USDA.
Chile, the third-largest cranberry producer, has had a duty-free agreement with the EU since 2012.
Mexico, which like the EU was reacting to U.S. tariffs on steel and aluminum, applied a 20 percent tariff on sweet dried cranberries in early June. Next up, China is scheduled to increase tariffs on sweet dried cranberries to 40 percent from 15 percent on July 6.
The U.S. sells about $45 million worth of cranberries to China annually, according to Humfeld.
“China is an important expanding market for U.S. cranberries,” he said. “There is great potential for continued growth, so we hope that the parties involved can reach an agreement that will allow the cranberry industry to continue providing cranberry products to consumers in China.”
The EU imposed tariffs on dozens of goods to retaliate for the Trump administration’s 25 percent tariffs on steel and 10 percent tariffs on aluminum. U.S. goods slapped with retaliatory tariffs include clothes, makeup, industrial supplies, and other agricultural products such as sweet corn, kidney beans, peanut butter and orange juice.
