The dispute over subsidies for aircraft manufacturers fueled the trade dispute between America and the EU. Trump has already imposed punitive tariffs on steel and aluminum imports threatening future tariffs on cars.
In the dispute over illegal subsidies for the European aircraft manufacturer Airbus, the US wants to impose retaliatory tariffs on various EU exports. The US Trade Representative Robert Lighthizer published a preliminary list of goods worth about $11 billion on Monday (local time) in Washington, equivalent to about 9.8 billion euros.
In addition to the inclusion of products and components for the aviation industry, numerous other goods such as cheese, olive oil, oranges, and seafood are also present in the list. The full list can be read on the official Ustr.gov website.
However, Americans’ goal is an agreement with the European Union is to end all subsidies for aircraft that violate World Trade Organization (WTO) rules, Lighthizer said. Should the EU end the illicit aid, the additional tariffs on European goods could be lifted.
The USA had already applied to the World Trade Organization (WTO) for punitive tariffs in the conflict with the EU and expects the arbitration body to reach a decision soon. The legal dispute has been going on for 15 years. “The time for action has come,” Lighthizer now announced. The tariffs should only be lifted when the EU ends the subsidies.
The EU Commission is also threatening to punish the US for punitive tariffs because of subsidies for the European aircraft manufacturer Airbus. The extent of the proposed countermeasures of the US was “greatly exaggerated,” said a representative of the Brussels authority on Tuesday the news agency Reuters.
The EU had also sued the US for illegally subsidizing Airbus rival Boeing before the WTO. The WTO found that there had been breaches of the rules on both sides, but did not determine the exact amount of the damage yet. It was only at the end of March that a WTO Appellate Body ruled in the final instance that Boeing continued to receive state aid despite a previous ruling on banned subsidies. The organization thus cleared the way for the European Union to take retaliatory steps as well.