Trade relations

'Punitive tariffs' by US on German biscuits and confectionery is hitting manufacturers

By Anthony Myers

- Last updated on GMT

A US tariff on German baked goods is causing concern, says the BDSI. Pic: ISM
A US tariff on German baked goods is causing concern, says the BDSI. Pic: ISM

Related tags Usa Eu Biscuit

The 25% penalty on sweetened biscuits and waffle products exported from Germany to the United States has had a negative impact on its manufacturers, claimed the Association of the German Confectionery Industry (BDSI).

Since its launch in October 2019, foreign trade sales have decreased by -21.7%, latest figures published in April reveal, with a further decline expected throughout 2020.

Until the punitive tariffs for cookies and waffles were raised, the United States was by far the most important export country for German biscuit manufacturers and the confectionery companies outside the EU as a whole​,” said a spokesperson for the BDSI.

The tariff also applies to imports from the UK, but not the rest of the European Union, putting the two countries at an unfair advantage – the BDSI claimed.

Impact on jobs

These punitive tariffs endanger the years of commitment of the German manufacturer of fine baked goods in the USA. But also in Germany, this can have a significant impact on jobs​,” said Andreas Nickenig, chairman of the speciality baked goods division at BDSI.

The tariff on baked goods was introduced after the World Trade Organization approved US plans to impose $7.5bn in tariffs on EU goods annually, to counteract years of European loans and illegal subsidies to aircraft manufacturer Airbus.

The BDSI said it is urging for a quick resolution as negotiations between the European Commission and the US government continue, and has called for temporary help for companies already burdened by the coronavirus pandemic and a setting up of a European Compensation fund.

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