Germany’s BDSI offers renewed warning over 15% tax on confectionery exported to the US

Germany’s BDSI confectionery body has offered a renewed warning that 15% tariffs being imposed by the US on the European nation’s sweets’ exports, is hitting companies hard, writes Neill Barston.

As the organisation noted, the comprehensive  increase in import tariffs on almost all product categories has now come into effect, making trading conditions more challenging and complex.

However, the BDSI noted that it recognises the political tariff and trade agreement between the EU Commission and the US as an important step towards de-escalating tensions surrounding transatlantic trade.

Nevertheless, as the group noted, the situation for the confectionery industry remains tense. The new flat tariff rate of 15% represents a significant burden for the export-oriented German confectionery industry.

Approximately 5% of the industry’s exports go to the United States and are now affected by the significant price increases resulting from the US tariffs. Based on the agreement in principle reached, it is now time to start talks with the US on a permanent liberalization.

“US exports are becoming a major challenge. Once again, the urgent political need to strengthen the international competitiveness of companies manufacturing in Germany is becoming apparent. The initial focus must be on competitive electricity and energy prices for all manufacturing sectors, as well as on reducing excessive bureaucracy,” explains Dr. Carsten Bernoth, Executive Director of the BDSI. “If the framework conditions are right, the challenges facing US business can be resolved.”