FACTBOX-Import tariffs: EU versus United States

LA MALBAIE, Quebec, June 9 (Reuters) - The United States and the European Union clashed over trade tariffs at a summit of G7 leaders in Canada on Friday and Saturday, with U.S. President Donald Trump complaining his country has been unfairly treated in trade by the EU for decades. European Commission President Jean-Claude Juncker said the European Union and the United States have the largest bilateral trade and investment relationship in the world worth roughly 900 billion euros ($1.06 trillion) per year and growing. The trade created 6.9 million jobs in the U.S. Below are figures prepared by the EU for the summit meeting. More than 70 percent of all foreign direct investment into the United States comes from the European Union. This number has doubled over the last 15 years. U.S. companies earn more than twice as much exporting goods to the EU as they do exporting to China - 251.5 billion euros ($295.91 billion) compared to 115.4 billion euros ($135.78 billion) in 2017. U.S. companies earn some $106 billion more in corporate profits in the EU than EU companies do in the U.S. When these corporate profits are added to the U.S. trade balance, Washington has no trade deficit with the EU. Some 2.4 million European cars are made in the U.S. every year. Some 60 percent of German cars made in the U.S. are exported abroad. The BMW Spartenburg plant in South Carolina is the biggest BMW factory in the world, employing 10,000 people and exporting out of the U.S. 70 percent of what it makes. Some 70,000 U.S. workers depend on jobs linked to the BMW group. Below is a comparison of peak import tariffs in selected sectors

Sector US EU Passenger cars 2.5% 10%

However, due outward processing (EU cars parts shipped to the US for assembly) a very large portion of US car imports into the EU is actually subject to a much lower import duty.

In 2017, only 1 billion euros out of the total value of US cars imports to the EU of EU 6.5 billion was subject to the full tariff.

Road tractors and buses tractors up to 4% and buses 2% up to 16% Bus & truck chassis up to 4% 19% Leather articles up to 20% up to 9.7% Textiles and clothing up to 32% up to 12% Footwear up to 48% up to 17% Ceramics up to 28% up to 12% Glass up to 38% up to 11% Titanium 15% 7% Cathode ray tubes 15% 14% Trucks 25% 22% *These are peak tariffs, not average tariffs for a certain industrial sector or


Industrial sub-sectors where the difference between EU and US trade weighted tariffs is larger than 4%:

Subsector EU US Difference Consumer electronics and video 13.8% 1.1% +12.7% Passenger cars 9.9% 2.5% +7.4% Leather articles 4.1% 9.1% -5.0% Semi-finished aluminum 7.5% 2.8% +4.7% Cork products 4.6% 0.0% +4.6% Trucks and buses 10.5% 14.9% -4.4% Other Vehicles (such as motorcycles and bicycles) 5.0% 0.9% +4.1%

Key US non-tariff barriers to EU exporters, according to EU data:


* Beef: 50 out of 50 U.S. states can export beef to the EU. Only 4 out of 28 EU Member States can export beef to the U.S. (France, Ireland, the Netherlands and Lithuania).

* Poultry meat: 50 out of 50 U.S. states can export poultry meat to the EU. None of the 28 EU member states can export poultry meat to the U.S.

* Eggs and egg products: 50 out of 50 U.S. states can export eggs and egg products to the EU. Only one (the Netherlands) out of 28 EU Member States can export egg and eggs products to the U.S.

* Grade A dairy products such as cheeses incorporating pasteurized milk; 50 out of 50 U.S. states can export grade A dairy products to the EU. None of the EU countries can export grade A dairy products to the U.S.

* Plants, fruits and vegetables. The EU has an open system; unless there are specific restrictions called for because of particular pests, all 50 U.S. states can export plants, fruits and vegetables to the EU without any limitation. However, an overly lengthy and burdensome approval procedure is required for every plant, fruit and vegetable to be exported to the U.S. from every EU Member State.


* "Buy America restrictions impose U.S. content requirements of up to 100 percent for steel and many manufactured products. De facto, this closes the U.S. market to some EU exports.

* There is no "Buy European" Act in the EU. U.S. companies can compete in EU tenders on an equal footing under EU rules.

* English translations are available in all Member States. Procurement conditions and restrictions in the U.S. vary significantly from State to State and information is not easily accessible.

* Heritage Foundation study found that "Buy American" preferences permit American firms to charge the U.S. government between 6 and 50 percent more than market prices (depending on the agency and the goods/services procured). ($1 = 0.8499 euros)

(Reporting By Jan Strupczewski)