Kamil Perry
In 2019, the United States planned to impose tariffs on $11 billion worth of EU products, including agricultural products, in response to EU subsidies to Airbus, a direct competitor of the American company Boeing. However, Greek feta cheese was notably exempted from these tariffs, which was a significant development for Greece and its agricultural sector. This exemption was a result of improved relations between Washington and Athens and the efforts of Greece's Ministries of Foreign Affairs and Economy. While the US has imposed tariffs on various European goods, such as Spanish olive oil and olives, certain Greek products like olive oil have also been excluded from these tariffs. The US-EU trade relations and tariff disputes have been a topic of discussion, with potential implications for global trade and prices for consumers.
| Characteristics | Values |
|---|---|
| Is Feta cheese subject to new tariffs? | Feta cheese from Greece has been exempted from the new tariffs on EU products by the US government. |
| Reason for exemption | The exemption was given because Greece does not produce any Airbus parts or have an Airbus manufacturing facility. |
| Reason for new tariffs | The US imposed tariffs on EU products in response to EU subsidies to Airbus, a competitor of the American company Boeing. |
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What You'll Learn
Feta cheese exempted from US tariffs on EU products
Feta cheese has long been a point of contention between the United States and the European Union over the right to use the term "feta". In 2015, the EU planned to seal the world's largest free trade deal with the US, but differences over food names, particularly the right of cheese makers to use the term "feta", threatened the deal. The EU argued that feta is a region-specific term, and that only products from Greece, which has produced feta for over 6,000 years, can carry the name. The US, on the other hand, argued that the term is generic, like "cheddar" or "mozzarella", and not region-specific.
In 2019, Greece managed to get feta exempted from US tariffs imposed on European goods. The American Customs and Border Protection Agency informed the Greek Embassy in Washington that it would revoke its decision to reclassify customs duties on importing sheep-originating cheese from Europe. This decision signified the exemption of feta cheese from the tariffs. Greece's Agricultural Development and Foods Minister, Stavros Arachovitis, commented that the protection of feta cheese and Greek livestock farming and production is central to the country's policy for an extroverted agricultural food sector.
However, in 2025, Greek feta producers faced uncertainty due to US tariffs. A cooperative of 1,200 stock breeders in Kalavrita, Greece, aimed to expand into the US market, but President Donald Trump's imposition of a 10% tariff on most goods imported to the US threatened their plans. Christos Apostolopoulos, head of Greece's association of dairy industries, expressed concern that the tariffs could at least halve exports to the US.
The US-EU trade dispute escalated further, with the World Trade Organisation (WTO) ruling in 2019 that the EU had illegally subsidised aerospace giant Airbus. This ruling allowed the US to impose tariffs on exports from Europe worth up to $7.5 billion per annum. The US also planned to impose tariffs on $11 billion worth of EU products in response to the EU's subsidies to Airbus, which competed with the American company Boeing.
While feta cheese was initially exempted from these tariffs, the situation remained fluid, and it was unclear if the exemption would be permanent. The dispute highlighted the importance of geographical indications (GIs) and the economic and cultural implications of tariffs on iconic food products.
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Tariff classification of Feta cheese from Greece
Feta cheese is a protected EU trademark and a traditional Greek product. In 2019, the US imposed tariffs on EU products, exempting Greek feta cheese. This exemption was a diplomatic victory for Greece, attributed to improved relations between Washington and Athens. The exemption aimed to protect Greek livestock farming and cheese production, which is integral to the country's economy and agricultural sector.
However, in 2025, Greek feta producers faced uncertainty due to new US tariffs. President Donald Trump's administration imposed a 10% tariff on most goods imported into the United States, including those from the European Union, which faced 20% reciprocal tariff rates. This move caused concern among Greek exporters, who anticipated a significant impact on their exports to the fast-growing US market.
The United States, as a member of the World Trade Organization (WTO), has established tariff rate quotas (TRQs) for dairy products. TRQs permit imports at low tariffs up to fixed amounts, with additional imports subject to higher tariff rates. The EU has pushed for extended protections for geographical indications (GIs), which identify goods closely linked to their geographical origin, including certain cheese names like feta.
Greek feta cheese has been at the centre of trade discussions between the US and the EU. While the product initially received an exemption from US tariffs on EU goods, the dynamic nature of international trade and relations means that the tariff landscape can change over time. Greek exporters are now navigating the challenges posed by new US duties, exploring alternatives to maintain the presence of their beloved feta cheese in the lucrative American market.
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US-China Economic and Trade Agreement
On January 15, 2020, the United States and China signed the US-China Economic and Trade Agreement (Phase One). This agreement was a significant step towards rebalancing the trade relationship between the two countries and addressed China's policies on technology transfer, intellectual property, and innovation. It prohibited China from forcing foreign companies to transfer their technology as a condition for market access and ensured that any technology transfer or licensing would be based on voluntary, market-based terms. The agreement also granted market access for new US horticultural products, such as avocados, blueberries, and nectarines, and China committed to making agricultural biotechnology policy reforms.
In exchange for China's pledges, the US agreed to roll back the sky-high tariffs imposed by the Trump administration on Chinese imports. This concession was hailed as a victory by Chinese officials and state-run media, who viewed it as a validation of their negotiating strategy. The deal brought temporary relief from the escalating trade tensions between the two economic powers, with stock markets surging worldwide following the announcement.
As part of the Phase One agreement, China also committed to increasing its imports of agricultural products and addressing certain non-tariff trade issues. On February 18, 2020, China announced a new round of tariff exclusions for US agricultural commodities, including some dairy products, affected by the additional tariffs previously levied by China. This move was in line with China's commitment to make market-based reforms and join the World Trade Organization (WTO), which it officially became a part of in 2001.
While the US-China Economic and Trade Agreement did not specifically mention feta cheese, it is worth noting that feta cheese produced in Greece has been exempt from US tariffs on EU products. This exemption was secured by Greece's Agricultural Development and Foods Ministry and was seen as a positive development in the context of improving relations between Washington and Athens.
Overall, the US-China Economic and Trade Agreement represented a significant de-escalation in trade tensions between the two countries, with both sides making concessions and commitments to improve market access and resolve structural issues.
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US-Mexico-Canada Agreement
The United States-Mexico-Canada Agreement (USMCA) is a free trade agreement among the United States, Mexico, and Canada. It came into effect on July 1, 2020, replacing the North American Free Trade Agreement (NAFTA) implemented in 1994. The USMCA is a modernization of NAFTA, with key changes including increased environmental and working regulations, greater incentives for automobile production in the US, and more access to Canada's dairy market. The agreement is expected to create more balanced, reciprocal trade, supporting high-paying jobs for Americans and growing the North American economy.
USMCA is a 21st-century, high-standard trade agreement that supports mutually beneficial trade, resulting in freer markets, fairer trade, and robust economic growth in North America. It is mutually beneficial for North American workers, farmers, ranchers, and businesses. The agreement covers a wide range of sectors, including agricultural produce, manufactured products, labour conditions, and digital trade.
Under the USMCA, U.S. goods and services trade with USMCA totaled an estimated $1.8 trillion in 2022. Exports were $789.7 billion, while imports were $974.3 billion, resulting in a trade deficit of $184.6 billion. U.S. goods exports to USMCA in 2022 were $680.8 billion, a significant increase from 2021 and 2012. Similarly, U.S. goods imports from USMCA totaled $891.3 billion in 2022, with a trade deficit of $210.6 billion. The USMCA has also led to an increase in U.S. exports of services, estimated at $109.0 billion in 2022, and a trade surplus of $26.0 billion.
The USMCA has had some impact on dairy trade in the region. While tariffs on dairy products traded between the United States and Mexico remain at zero under the agreement, tariffs on dairy trade between the United States and Canada are being gradually introduced over several years. However, it is unclear if these tariffs specifically apply to feta cheese.
Regarding the question of whether feta cheese is subject to new tariffs under the USMCA, there is no clear indication that this is the case. While there have been discussions and concerns about tariffs on dairy products, the sources do not provide specific information on tariffs related to feta cheese within the context of the USMCA. However, it is important to note that feta cheese, particularly Greek feta cheese, has been involved in tariff discussions between the United States and the European Union. In 2019, Greece gained an exemption from an approximate ten percent levy on Greek feta cheese imposed by the Trump administration as a response to EU subsidies to Airbus, a competitor to Boeing. This suggests that Greek feta cheese may have been subject to tariffs in the past, but an exemption was negotiated.
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US tariffs on European goods
In 2025, US President Donald Trump threatened to impose a 50% tariff on all goods imported from the European Union (EU), citing a lack of progress in trade negotiations. This move is intended to force Europe to abandon its protectionist policies, which have resulted in a trade surplus with the US. The EU has responded by offering a "zero-for-zero" tariff deal and warning that higher tariffs would harm both sides.
The EU and the US have a significant trading relationship, with the EU sending over $600 billion worth of goods to the US and purchasing $370 billion worth of goods in return. The EU has long been pushing for protections for geographical indications (GIs), which cover certain foodstuffs, including cheese names like Parmesan, feta, and provolone.
In the past, the US and the EU have both reduced domestic support and export subsidies for dairy products, leading to greater competition in world markets. The US-Mexico-Canada Agreement (USMCA), which replaced NAFTA in 2022, has kept tariffs on dairy products traded between the US and Mexico at zero, while gradually introducing new access for dairy trade with Canada.
While feta cheese from Greece was initially subject to a proposed 10% tariff by the Trump administration in 2019, it was later granted an exemption. This exemption was the result of improved relations between Washington and Athens and the efforts of the Greek government to protect its agricultural sector.
The US-China Phase One trade agreement, signed in 2020, included China's agreement to increase imports of agricultural products and make changes to non-tariff trade issues. As a result, China announced tariff exclusions for some US dairy products previously subject to additional tariffs.
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Frequently asked questions
Feta cheese from Greece has been exempted from new tariffs imposed by the US on certain EU products.
The US planned to impose tariffs on \$11 billion worth of EU products in retaliation for EU subsidies to Airbus, which is a competitor of the American company Boeing.
Spanish olive oil and olives are examples of European goods that are subject to new American tariffs.
