USTR to Impose Tariffs on EU Goods

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USTR to Impose Tariffs on EU Goods

The United States will impose tariffs on $7.5 billion in goods from the European Union after the World Trade Organization (WTO) authorized the levies on Wednesday, due to the EU’s subsidies to Airbus. The Office of the U.S. Trade Representative said it will impose the tariffs beginning October 18, with 10% levies on jetliners and 25% duties on other products including Irish and Scotch whiskies, European foodstuffs (such as coffee, olives, cheeses, cordials and liqueurs) and tools. The WTO authorized the U.S. to impose tariffs of up to 100% on $7.5 billion of goods over support programs for Airbus. U.S. aerospace rival Boeing Co. pressed for 100% duty on Airbus jets. “For years, Europe has been providing massive subsidies to Airbus that have seriously injured the U.S. aerospace industry and our workers,” U.S. Trade Representative Robert Lighthizer said in a statement. “Finally, after 15 years of litigation, the WTO has confirmed that the United States is entitled to impose countermeasures in response to the EU’s illegal subsidies.” The European plane maker said that increasing duties will raise costs for airlines in the U.S. as well as Europe. Airbus sources roughly 40% of its parts from the U.S. and has a plant in Mobile, AL. The EU filed its own WTO complaint against Boeing Co., but the U.S. began its case against Airbus earlier, therefore Washington can impose tariffs against Europe first. The WTO is expected to issue its decision in the Boeing case in early 2020, at which point the EU may be authorized to impose tariffs of its own. If you have any questions, please feel free to contact your KRIEGER Worldwide Representative for more information.




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