Business Notes TRADE

The U.S. may take pride in the quality of its steaks, but the Europeans have turned up their noses at American beef. The result could be a full-fledged food fight. Starting Jan. 1, the European Community will ban U.S. meat that has been treated with growth hormones. The rule applies to virtually all U.S. beef exports to the E.C., worth about $100 million a year. In retaliation, the Reagan Administration is slapping 100% tariffs on $100 million worth of annual food imports from Europe, including Danish hams, Italian canned tomatoes and West German instant coffee.

The E.C.'s ban is based on concerns that animal growth hormones might be hazardous to humans. Reagan Administration officials insist that there is no scientific support for the claim. But under pressure from consumer groups, Italy, West Germany, the Netherlands and Belgium have banned the additives, which prompted the E.C.'s import restriction. While the U.S. has stood firm on the issue, other meat exporters (New Zealand, Brazil, Argentina and Australia) have agreed to ship only hormone-free beef to Europe.

The tussle adds to U.S. fears that Europe's movement toward a unified market in 1992 will raise increasing barriers to outside competition. The beef war already shows signs of escalating. E.C. officials are preparing a list of U.S. food imports as counterretaliatory targets. Among them: dried fruit, canned corn and honey.