Record US tariff award over Airbus aid could fuel trade tensions

Transatlantic trade ties face renewed disruption this week when global arbiters are expected to grant the US a record award allowing it to hit European imports with billions of dollars of tariffs in a long-running aircraft subsidy dispute. The WTO has found that both European planemaker Airbus and its US rival Boeing received billions of dollars of illegal subsidies in a pair of cases that have run for 15 years. Both sides have threatened tariffs after the Geneva body found neither adhered fully to its findings. However, the United States has a head start, with the European Union having to wait until early in 2020 to hear what level of retaliation it can exact over Boeing. The WTO is expected this week to reveal the amount of EU goods the United States can target. People familiar with the case say the three-person tribunal is expected to award it around $7.5b, a record for the 24-year-old watchdog. Such retaliation rights are rarely granted by the WTO - most parties reach settlements - and in many cases complainants do not exercise their rights. The US though has indicated it will target EU goods to the fullest extent. The WTO award in the world’s largest corporate trade dispute could fuel already strained trade tensions, diplomats say. Airbus has said this would lead to a ‘lose-lose’ trade war. Some US airlines have urged the administration not to go ahead with the tariffs, saying they could lead to layoffs.<br/>