TRADE, TARIFFS AND TRUMP
Barend ter Haar argues tariffs will result in a lose-lose scenario
Following an announcement by the US administration to impose a 25 percent duty on the import European steel and a 10 percent duty on European aluminium, BES Corporate’s Barend ter Haar shares his thoughts regarding the potential impact for importers and exporters in the industry.
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n early June, new tariffs were introduced by the US on steel and aluminium, resulting in higher import charges for anyone importing metal to the United States from the EU, as well as Canada and Mexico. Originally the EU and UK were exempt from the tariffs introduced by President Trump, who imposed the tariffs on grounds of national security, to allow time for ongoing negotiations. The exemption ended at midnight on the 31st May however, leading to the new taxes to take effect as of the 1st June. In response, the EU introduced duties on €2.8bn (£2.4bn) worth of US goods on the 22nd June 2018, particularly impacting products such as bourbon whiskey, motorcycles and orange juice. In retaliation to the move by the EU, the US President threatened to escalate the tariffs, imposing a substantial 20 percent tariff on all imported EU cars.
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INDIRECT IMPACT As more countries continue to respond with retaliatory tariff and duties actions of their own, Barend considers what effect the current steel and aluminium taxes may have on UK suppliers of mobility equipment. Discussing the impact of the tariffs on BES Corporate, Barend ter Haar told THIIS: “Since most of the products we handle are medical products, they still benefit from zero rated duties in both directions across the Atlantic. “However, it is the indirect effect
of the new import tariffs that will be noticeable.” In particular, Barend highlighted the impact of the announcement of tariffs on the prices of commodities such as steel, as well as the effect on global currency rates, with market fluctuations occurring almost immediately. “We have been bringing in industrial sized equipment washers, the AquaPhase, for loan stores and hospitals for over 20 years from a specialist company in Wisconsin. We
“ The post-Brexit pound revaluation and the steel tariffs have combined to make these US products barely competitive in the marketplace and we have turned to a German company as an alternative supplier” BAREND TER HAAR