Europe to impose tariffs in 16-Year trade fight with US
The EU said Monday that it would begin imposing sweeping tariffs on around $4b worth of American aircraft, food, drinks and other products beginning Tuesday, an action cleared by the WTO last month after it said Europe could retaliate against the US for years of illegal subsidies given to Boeing. The decision, which stems from a 16-year-old dispute before the global trade body, comes after the Trump administration last year decided to impose tariffs on as much as $7.5b in European exports annually as retaliation for what the WTO ruled were illegal subsidies given to Airbus, Boeing’s main rival. European officials, however, say they are hoping for a settlement between the two countries that would end to the tit-for-tat tariffs once and for all, perhaps even before President Trump leaves office on Jan. 20 to make way for President-elect Joseph R. Biden Jr., according to a European Union official with knowledge of the cases who spoke on the condition of anonymity in order to discuss private negotiations. It remains to be seen if the European tariffs will encourage the US to negotiate — or if they further inflame a trans-Atlantic trade spat where the Trump administration has vowed not to bend. In a statement Monday, Robert E. Lighthizer, the US trade representative, said the US “is disappointed” by the EU’s decision. “The alleged subsidy to Boeing was repealed seven months ago,” Lighthizer said, referring to a Washington State tax break that was rescinded last spring. “The EU has long proclaimed its commitment to following WTO rules, but today’s announcement shows they do so only when convenient to them.”<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-11-10/general/europe-to-impose-tariffs-in-16-year-trade-fight-with-us
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Europe to impose tariffs in 16-Year trade fight with US
The EU said Monday that it would begin imposing sweeping tariffs on around $4b worth of American aircraft, food, drinks and other products beginning Tuesday, an action cleared by the WTO last month after it said Europe could retaliate against the US for years of illegal subsidies given to Boeing. The decision, which stems from a 16-year-old dispute before the global trade body, comes after the Trump administration last year decided to impose tariffs on as much as $7.5b in European exports annually as retaliation for what the WTO ruled were illegal subsidies given to Airbus, Boeing’s main rival. European officials, however, say they are hoping for a settlement between the two countries that would end to the tit-for-tat tariffs once and for all, perhaps even before President Trump leaves office on Jan. 20 to make way for President-elect Joseph R. Biden Jr., according to a European Union official with knowledge of the cases who spoke on the condition of anonymity in order to discuss private negotiations. It remains to be seen if the European tariffs will encourage the US to negotiate — or if they further inflame a trans-Atlantic trade spat where the Trump administration has vowed not to bend. In a statement Monday, Robert E. Lighthizer, the US trade representative, said the US “is disappointed” by the EU’s decision. “The alleged subsidy to Boeing was repealed seven months ago,” Lighthizer said, referring to a Washington State tax break that was rescinded last spring. “The EU has long proclaimed its commitment to following WTO rules, but today’s announcement shows they do so only when convenient to them.”<br/>
