Trump’s penalty fees could result in Tine losses of NOK 5 million a month

The penalty imposed by Donald Trump against the EU will bring Tine’s efforts in Ireland up to NOK 5 million in losses each month.

Tine is currently building a new production facility in Ireland to produce Jarlsberg cheese for the overseas market in connection with the export subsidy disappearing from Norway on the first of July this year.

Now it turns out that Tine’s costs could be far higher than they had imagined. In October last year, Trump imposed a 25 percent tariff on a number of European products in return for European subsidies to Airbus, including dairy products. The nation writes that this will give Tine huge extra costs when cheese production in Ireland gets started.

– “If we do not get the penalty rate of 25 percent out in the market in the form of higher prices, then it will give us a cost of up to NOK 5 million a month,” Tine CEO Gunnar Hovland told the newspaper.

Tine plans to produce around 6,000 tonnes of cheese in Ireland for the US market.

© NTB Scanpix / #Norway Today