BRUSSELS, Belgium (AP) — In an escalating feud over plane industry subsidies. The European Union executive commission said that it has compiled list of $20 billion in US products that it may tax.
In an escalating feud over plane industry subsidies. The executive commission EU announced that it has compiled list of $20 billion worth of US goods that may tax.
The EU is planning to impose taxes on products such as airplane parts and frozen fish in retaliation for U.S. Which it says has hurt Airbus
The extent of the EU’s punitive duties will be determined by a World Trade Organization ruling. Earlier in this dispute, the EU requested permission to target $12 billion in US goods. Businesses and stakeholders have until May to comment on the proposed EU tariffs.
The move comes just days after the US announced tariffs on $11 billion in EU-traded goods to offset EU subsidies for Airbus that have harmed Boeing. Among the hundreds of items on the list are European planes, wines, cheeses, and olive oil.
Cecilia Malmstrom,stated that the EU wants to avoid engaging in “tit-for-tat” behaviour in the protracted dispute and that it “remains open for discussions with the U.S. Provided these are without preconditions and aim at a fair outcome.”
The EU threatens to US
The EU’s threat list was made public after the dispute resolution body of the WTO determined on April that the United States had not taken the necessary steps to comply with the WTO’s subsidy rules. EU officials admitted that the duties would most likely be much less than $20 billion.
Trade tensions between the United States and the European Union have been high. Since President Donald Trump imposed tariffs on European steel and aluminium imports last year.
The EU retaliated with tariffs on 2.8 billion euros ($3.4 billion) in US steel, agricultural, and other products ranging from Harley Davidson motorcycles to orange juice.
Since July, the United States and the European Union have been negotiating how to reduce tariffs. With Trump threatening to slap tariffs on European cars — a huge industry in the region — if the talks fail.