Trade dispute with the EU: US tighten punitive tariffs on Airbus aircraft

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Trade dispute with the EU : USA tighten punitive tariffs Aircraft from Airbus

The US government increases tariffs on Airbus Aircraft to 18. March by half to 15 percent. However, the door to negotiations was not closed, it said from Washington.

In the dispute with the European Union over subsidies for the European aircraft manufacturer Airbus, the US government is turning back on the customs screw. The levies on EU aircraft would be raised to 15 percent of ten percent, the office of the US trade commissioner announced on Friday. The measure should take place on 18. March come into force. However, the US is still ready to resolve the dispute by negotiation.

The World Trade Organization (WTO) had the EU previously accused of not completely cutting subsidies for Airbus. The background is a dispute over more than 15 years before the WTO over state aid for Airbus as well as for the rival Boeing in the billions, which the WTO each has declared inadmissible. Last year the WTO gave the United States the green light for billions in punitive tariffs on airplanes and other EU imports such as wine and cheese. Since 18. October punitive tariffs of 25 percent already apply to numerous European agricultural and industrial goods. According to the latest US information, this duty rate will initially remain. However, it is said to hit other products that do not belong to the aircraft sector.

Waiting for WTO decision on Boeing subsidies

Airbus regretted the US decision to increase tariffs. The aircraft manufacturer wants to continue discussions with its US customers to alleviate the effects, said Airbus. The measure also complicates efforts to find a solution to the dispute over subsidies. The tariff increase also hurts American airlines and consumers.

Boeing says it hopes that the EU will end the “illegal subsidies “ended for Airbus. For its part, the EU is waiting for a WTO decision on illegal subsidies for the US aircraft manufacturer Boeing.

Since the US took office President Donald Trump has deteriorated US-EU trade relations because the Republican is disrupting the US trade deficit. Trump has also been threatening punitive tariffs on imports of European cars for some time.