A Bloomberg report has confirmed that the European Union is considering slapping tariffs on more than $4 billion of U.S. exports. Carrying on with what Iran has termed as ‘economic terrorism’ Trump administration has known to have threatened to slap tariffs on as much as $7 billion EU imports due to allegedly illegal EU aid for European plane maker Airbus.
This is a result of WTO has granted the United States a record award allowing it to hit European imports with billions of dollars of tariffs in a long-running aircraft subsidy dispute.
The World Trade Organization will be releasing a specific amount of trade that Washington is allowed to target as soon as next week. This would follow a 14-year dispute in which Washington believed that EU countries have illegally supported Airbus by granting subsidized loans known as “launch aid,” as well as separate state help for the development of the A350 and superjumbo A380.
Added tariffs could mean massive layoffs in the aerospace industry for the US and European Union, something of a warning that industry back home has given to Washington. But Trump administration believes that economic sanctions have helped bring China and Japan to a negotiation table and therefore it feels this is the best way to get the EU to mend its ways as well.
WTO earlier had discovered that both Boeing and Airbus had received billions of dollars of illegal subsidies in a pair of cases that have run for 15 years. Both parties threatened tariffs without adhering to the Geneva body’s findings. As it would go, the US has made the first move of threatening with sanctions and the EU has only later been able to make up its mind to retaliate, with at least one EU nation that has agreed to this literally ‘shark move’.