U.S. Proposes $4B More European Tariffs Over Aircraft Subsidies

As part of the long running Airbus-Boeing dispute, the U.S. Trade Representative is considering tariffs on 89 additional items.
U.S. Proposes $4B More European Tariffs Over Aircraft Subsidies

The U.S. Trade Representative (USTR) proposed a list of products that could be hit with new tariffs, as part of a long-running dispute with the European Union over aircraft subsidies.

The products, which include olives, Italian cheese, and Scotch whiskey, could be worth $4 billion. They would be in addition to tariffs on products worth $21 billion that were announced in April.

In a statement, the Office of the U.S. Trade Representative said it was issuing the supplemental list in response to “harm caused by EU aircraft subsidies.” The trade representative said the list added 89 tariff subheadings.

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The EU dispute stretches back 15 years, when EU authorities said Boeing got $19 billion in unfair subsidies from state and federal governments in the U.S. The United States filed a similar claim that year over European subsidies to Airbus. Both sides received favorable rulings from the World Trade Organization.

“In the event the Arbitrator issues its decision prior to completion of the public comment process on the supplemental list, the USTR may immediately impose increased duties on the products included in the initial list, and take further possible actions with respect to products on the supplemental list,” the statement said.

Last month, at the Paris air show, it was reported that the U.S. could be open to negotiations on an agreement that would allow Airbus to get government funds.

Over the weekend, U.S. officials announced a truce in the trade war with China after President Donald Trump and Chinese President Xi Jinping met on the sidelines of the G20 summit in Osaka, Japan.

The Distilled Spirits Council of the United States criticized the threatened tariffs and said it strongly opposed the inclusion of distilled products.

“U.S. companies — from farmers to suppliers to retailers — are already being negatively impacted by the imposition of retaliatory tariffs by key trading partners on certain U.S. distilled spirits, and these additional tariffs will only inflict further harm.” spokesperson Lisa Hawkins said.

The USTR said it would hold a hearing on the new tariffs August 5.

Photo: Getty Images/Sean Gallup