European Dairy Sector Faces Increasing Trade Challenges Under Trump's Presidency
The European Union (EU) dairy sector is bracing for increased challenges as Donald Trump assumes the presidency in the United States. The uncertainty in trade relations has exacerbated existing challenges, including geopolitical instability and a dwindling number of young farmers entering the industry, according to EU experts.
Laurens van Delft, director of trade and economics at the European Dairy Association (EDA), highlighted the complexities the industry faces due to simultaneous issues such as potential US tariffs, countervailing duties from China, and rising production costs. Each challenge can be managed on its own, but their convergence presents a significant hurdle.
Concerns over US tariffs arise from remarks made by Trump, threatening increased tariffs on EU imports, potentially starting February. The US imported substantial EU dairy products in 2024, including 102,754 tonnes of cheese and 45,374 tonnes of butter, based on European Commission data.
China, meanwhile, is contemplating new countervailing duties on certain EU dairy products, which account for a significant portion of EU exports to China. The potential disruptions arrive as the EU dairy sector is already adapting to stringent sustainability regulations.
The EDA warns that trade disruptions could have severe repercussions on Europe’s dairy industry. These arise amidst a necessary shift towards opening new markets to lessen dependence on specific trading partners. The European Commission is urged to be proactive in tariff negotiations to safeguard the industry against sudden changes.
Alice O’Donovan from Eucolait emphasizes the necessity of integrating agricultural and trade policies. Ensuring open communication with stakeholders is vital to navigating potential US tariffs and China’s investigations at the World Trade Organization (WTO).
The EU's trade strategy is refocusing on supporting the dairy sector, addressing challenges such as environmental sustainability, and promoting generational renewal as outlined by the new agriculture commissioner. The recent trade deal with Mercosur nations exemplifies efforts to broaden market access.
The European Commission maintains its commitment to simplifying policies for farmers and enhancing generational renewal through financial supports and policies aiding youth in agriculture. International cooperation in creating a competitive food and drink industry remains a priority."
