US economy

US plans tariffs on $11bn in EU products over Airbus aid


The US is weighing tariffs on $11bn in EU products — including civilian aircraft and agricultural products ranging from Roquefort cheese to olive oil — in response to World Trade Organization rulings that found that Brussels had provided illegal subsidies to Airbus, in a development that threatens to further ramp up transatlantic trade tensions.

The move by the Trump administration was announced on Monday night — and comes on the heels of a WTO ruling establishing that the US had itself illegally subsidised the production of Boeing aircraft. 

US levies on the EU products would come on top of American tariffs already imposed on European steel and aluminium imports, and amid a threat by the Trump administration to add tariffs on EU automotive products for national security reasons. 

“This case has been in litigation for 14 years, and the time has come for action. The administration is preparing to respond immediately when the WTO issues its finding on the value of US countermeasures,” said Robert Lighthizer, the US trade representative.

“Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft. When the EU ends these harmful subsidies, the additional US duties imposed in response can be lifted.” 

Mr Lighthizer said the tariffs would be imposed under section 301 of the 1974 Trade Act — the same legislation used to justify the tariffs imposed on Chinese imports over the past year. 

The US said two categories of tariffs were being considered in response to the Airbus subsidies. The first involved new helicopters, new aircraft and aircraft parts coming from France, Spain, Germany and the UK. The second involved a broader range of products from all EU member states, including a variety of cheeses, from Gruyère to pecorino and Gouda, jams, wine and water.



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