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Consumers to feel bite of beef war

Tariff Food
 Some foods with 100 percent tariffs
  • Pork (fresh and frozen)
  • Truffles
  • Liver pates
  • Roquefort cheese
  • Fruit juices
  • Prepared mustards
  • Italian tomatoes
  • German soups
  • French chocolate
  • French raspberry jam
  •  ALSO:
  • U.S. imposes duties on fine European foods
  • French farmers honking over stiff U.S. tariffs on foie gras
  • July 30, 1999
    Web posted at: 4:39 p.m. EDT (2039 GMT)

    From Correspondent Gary Tuchman

    NEW YORK (CNN) -- What does U.S. beef have to do with European truffles, Italian tomatoes and French chocolate? They are new tools in an old trade war.

    The European Union bans most American beef. The EU says it is concerned about the health effects of the typical U.S. practice of treating beef with growth hormones, even though U.S. officials say there is no scientific evidence it is harmful.

    The United States has struck back with a 100 percent tariff on 34 European products ranging from pork and liver pate; to prepared mustards and French raspberry jams. U.S. stores will now have to pay twice as much for those products.

    New York's Grace's Marketplace will now pay $2,400 for a pound of white truffles instead of $1,200.

    "I'm going to try to keep the prices low as I can so that people can say that Grace's is not overpricing anything," said owner Joe Dorie.

    But at Cafe Mozart's, consumers will see a difference in paying for gourmet chocolate treats.

    "We'll definitely increase our prices, because our prices will go double," said owner Amir Benesh.

    Those who regularly buy any of the 34 targeted items now have decisions to make.

    "I don't know if I could give up something like Roquefort cheese because it's twice the price, but I think I'll buy a little less -- very sorrowfully," said one Grace's customer.

    Trade officials say they're sorrowful it's come to this, and it could be the beginning of similar trade wars.

    "The U.S. hopes the Europeans will avoid imposing new restrictions on American genetically treated food," said Bob Hormats of Goldman Sachs. "Whether the Europeans do or don't will determine whether the United States imposes more of those measures down the road."



    RELATED STORIES:
    WTO to approve sanctions against EU in beef row
    July 26, 1999
    Consumer groups seek to ban growth hormone for dairy cows
    June 15, 1999
    Belgium defies EU call for dairy ban
    June 8, 1999
    U.S. to block EU poultry, pork due to dioxin scare
    June 3, 1999
    Trade fight spills over into handbags, coffee makers
    March 3, 1999

    RELATED SITES:
    European Union
    World Trade Organization
    Grace's Marketplace
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