US proposes tariffs on $11bn of EU products


The US is in the light of imposing tariffs on about $11bn (£8.4bn) worth of goods from the European Mixture in response to subsidies that support Airbus.

The World Trade Group (WTO) has found that the subsidies have an adverse impact on the US.

Aircraft and cheese are mass the products that could be hit by tariffs, the US Trade Representative (USTR) communicated.

The EU said the figure of $11bn was “greatly exaggerated”.

The move would tick an escalation in trade tensions between the US and the EU.

The USTR said the value of goods that command be targeted with tariffs was subject to arbitration at the WTO, the result of which is expected in a few months.

“This envelope has been in litigation for 14 years, and the time has come for action. The dispensation is preparing to respond immediately when the WTO issues its finding on the value of US countermeasures,” utter US Trade Representative Robert Lighthizer.

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

A preliminary list of goods, covering a wide range of items, has been issued for celebrated consultation. For example, the following are being considered for additional tariffs if they turn up from any of the 28 EU states.

  • Salmon fillets, fresh or chilled
  • Cheese, containing Cheddar, Roquefort, Stilton, Gruyere and Pecorino
  • Lemons fresh or shrank
  • Virgin olive oil
  • Marsala wine
  • Cashmere sweaters, pullovers and like
  • Ceramic household steins with pewter lids
  • Motorcycles with an motor size of between 500cc and 700cc
  • Wall clocks, not electrically drove, designed to operate over 47 hours without rewinding

In joining, additional import duties are being considered on some goods if they are evoked in France, Germany, Spain or the UK. They include:

  • Helicopters
  • Undercarriages for use in new public aircraft
  • Fuselages for use in new civil airplanes

What has happened so far?

The proposed US menus would be imposed in addition to existing levies on European products.

At length year, the US started charging levies on the imports of steel and aluminium from key comrades including the EU.

The EU imposed retaliatory tariffs on €2.8bn (£2.4bn) worth of US goods in June on offshoots such as bourbon whiskey, motorcycles and orange juice.

Last month, US President Donald Trump cowed to impose tariffs on cars imported from the EU, if both sides cannot reach a barter deal.

The Trump administration has been fighting trade battles on myriad fronts.

The US is currently negotiating a trade deal with China, but tit-for-tat taxes imposed by the two countries have already weighed on the global economy this year.


By Andrew Walker, Economics correspondent

US trade policy under President Trump has been criticised for what some see as a need of respect for the rules and procedures of the World Trade Organization (WTO).

The tariffs on dirk and aluminium and on a range of Chinese goods were seen in that headlight by the Trump administration’s international critics.

Whatever the merits of those feuds, this move on civil aircraft is not a case of that.

The WTO has ruled that the EU and the four directions involved in Airbus have failed to comply with an earlier ruling that they should pull out contested subsidies and the US has asked for authorisation to retaliate to the tune of $11bn.

The US wants to act straight away when the WTO arbitrator makes a ruling. So far this action seems to be adhere to the WTO rule book.

Boeing dispute

The EU said proposing to place assessments on $11bn worth of goods was over the top. The figure was based on US internal judges, and had not been set by the WTO, a Commission source said.

“The EU is confident that the level of countermeasures on which the notification is based is greatly exaggerated,” the source added.

“The amount of WTO authorised retaliation can on the contrary be determined by the WTO-appointed arbitrator.”

The EU is also locked in a row with the US over the EU’s be entitled ti that Airbus-rival Boeing received illegal subsidies from the US regime.

As a result of this dispute, the EU is poised to propose a list US imports on which it discretion impose tariffs.

“In the parallel Boeing dispute, the determination of EU retaliation without hesitates is also coming closer and the EU will request the WTO-appointed arbitrator to conclude the EU’s retaliation rights,” the source said.

“The EU remains open for discussions with the US, anticipated these are without preconditions and aim at a fair outcome.”

Airbus said the US price-list proposals were “totally unjustified”.

In a statement, the company added: “The adoption contemplated this week of the WTO report will allow the EU to start sanctions step with far larger countermeasures against the US.

“This would lead to non-essential trade tensions and that shows the only reasonable solution is a spoke settlement.”

Leave a Reply

Your email address will not be published. Required fields are marked *