US retaliates against airbus subsidy with raised duty on additional EU goods

On Monday, The US Trade Representative’s office proposed to increase duty on a list of goods worth $4 billion imported from Europe. The move came as a retaliation against the aircraft subsidies given to the world’s biggest airplane manufacturers, Boeing (BA) and Airbus (EADSF). The conflict between EU and the US dates back to 2004 when EU authorities claimed that US aircraft manufacturer, Boeing, received $19 billion in unfair subsidies from federal and state governments between 1989 and 2006. The US government filed a similar claim against European aircraft manufacturer, Airbus, over European subsidies given to it. The case is to be decided by the World Trade Organisation, which is expected to deliver its findings this summer.

The news came out just two days after Washington reached truce in its trade war with Beijing. US President Donald Trump is aiming to build pressure on Europe with regard to its a long-running dispute over aircraft subsidies.

The list of additional products, released by USTR, included 89 products like meat, cheese, olives, pasta, fruits, coffee, and whiskey. olives,  Additional tariff would be levied on these goods, on top of products worth $21 billion that was announced in April.

USTR said that it added move products in response to public comments, but did not give any further explanation. Over 40 individuals testified about products included on the initial list at a public hearing on May 15 and 16.

The proposed tariff is subject to public consultation in the United States.

A spokesman of the European Commission said, “The European Union remains open for discussions with the United States, provided these are without preconditions and aim at a fair outcome.”

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