Connect with us

World

US will slap tariffs on EU following Airbus trade ruling

Thaiger

Published 

 on 

PHOTO: Airbus factory in Toulouse, France – Manatour.fr

The US is making more trade waves, in addition to its long-running trade war with China. Now it’s taking on the largest trade bloc in the world – the European Union.

Aircraft and agricultural items from Europe will now be subject to US tariffs in the latest round of a long legal fight. The move sets the stage for tit-for-tat trade escalation between the US and European Union. The US will impose tariffs on US$7.5 billion worth of European imports in retaliation for illegal EU subsidies to airplane maker Airbus.

The announcement came hours after the World Trade Organisation ruled on a 15 year old case that the US could impose US$7.5 billion in retaliatory tariffs in response to illegal EU subsidies to Airbus that hurt its American rival Boeing.

Washington plans to impose a 10% tariff on aircraft imported from Europe and apply a 25% import tax on other agricultural and industrial items on October 18, the Office of the US Trade Representative said in a statement.

 

Settlement targeted

The aim of imposing tariffs is to persuade the EU to reach a negotiated settlement, the trade office said.

US Trade Representative Robert Lighthizer says that, for years, Europe has been providing massive subsidies to Airbus that have seriously injured the US aerospace industry and our workers.

“We expect to enter into negotiations with the EU aimed at resolving this issue in a way that will benefit American workers.”

The list of goods primarily targets imports from France, Germany, Spain and the UK, which are the four countries providing Airbus with subsidies. They include everything from sausages and cheese to cookies and camera parts.

The WTO had approved up to 100% tariffs, but the US decided to limit the tax.

The US$7.5 billion represents a small chunk of EU’s $688 billion in exports to the US, but US airlines have warned the tax on aircraft would increase costs and advised that it should not be applied to existing orders.

Long-running case, far-reaching consequences

Although the US tariffs are allowed under international trade law, the move may set off a tit-for-tat escalation with the 28-member bloc at a time of trans-Atlantic trade tensions, uncertainty over Brexit and a trade war between Washington and Beijing that has rattled global markets.

“If the US decides to impose WTO authorised countermeasures, it will be pushing the EU into a situation where we will have no other option than do the same,” EU Commissioner for Trade Cecilia Malmstrom said in a statement.

Under WTO law the EU is not allowed to impose retaliatory countermeasures in response to the ruling, but another case may allow it to impose its own tariffs.

SOURCES: DW, AFP, AP, dpa, Reuters

 

Want more Thailand news from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📝️ Join the conversation on Thaiger Talk - discuss news & life in our Thailand forums
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

Leave a Reply

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

If you have story ideas, a restaurant to review, an event to cover or an issue to discuss, contact The Thaiger editorial staff.

Follow Thaiger by email:

Thailand38 mins ago

Man allegedly steals almost 300,000 baht from monk

Thailand1 hour ago

Illegal cigarette shipment busted, valued at 30 million baht

Thailand3 hours ago

Pair arrested for allegedly stealing prepaid phone cards worth 240 million baht, take home almost 150

Phuket Sandbox July 1st

days
hours
minutes
seconds

Thaiger is getting behind local businesses for the restart of tourism in July - up to 50% discounts across all advertising packages in June!

image
Join the conversation on the Thaiger Talk forums today!
Best of4 hours ago

Top 5 Indian Restaurants in Bangkok

Phuket4 hours ago

A Korean restaurant catches fire at a Phuket shopping centre

Best of5 hours ago

Top 10 Provinces to visit in Thailand

Coronavirus (Covid-19)5 hours ago

Pfizer-BioNTech vaccine approved for emergency use in Thailand

World5 hours ago

1 dead 99 unaccounted for in Florida building collapse

World5 hours ago

Airlines participate in trials of IATA Travel Pass app

Best of5 hours ago

Top 8 Street Foods in Thailand

World5 hours ago

A bed in the sky: Shanghai opens world’s highest luxury hotel

Thailand5 hours ago

GMT Live | Bangkok Covid situation, Klongtoey slums, Sandbox squabbles

Coronavirus (Covid-19)6 hours ago

Covid-19 cluster found at children’s home outside Bangkok

Best of6 hours ago

Top 5 Floating Markets in Bangkok

Phuket6 hours ago

Phuket officials in last-minute scramble to fix sandbox hiccups

Thailand4 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism4 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket4 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism4 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand4 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism4 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand5 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand5 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand5 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand5 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand5 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand5 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand5 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand5 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand6 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending