An Airbus A350-1000 performs a demonstration flight on June 17 at the 53rd Paris Air Show at Le Bourget, North of Paris, France. Photo by Eco Clement/UPI | License Photo
(UPI) – The Trump administration is considering new tariffs on products from the European Union worth $4 billion, as part of an ongoing feud with the alliance over aircraft subsidies.
The office of U.S. Trade Representative Robert Lighthizer issued a list late Monday detailing the products that could be affected by the tariffs. They would impact 89 products, including whiskey, coffee, meat, cheese and fruits. The EU-produced products would be added to a list introduced in April.
The dispute concerns subsidies given to aircraft manufacturers Airbus and Boeing. The conflict began 15 years ago when the EU said Boeing received nearly $20 billion in unfair subsidies over a 17-year period. U.S. officials have made similar complaints about France-based Airbus.
The World Trade Organization, which has authority over the dispute, found the subsidies given to Airbus violate international trade rules. Lighthizer’s office said they cause $11 billion in economic harm to the United States each year.
In April, the EU issued a preliminary list of retaliatory tariffs over subsidies to Boeing, worth about $21 billion. They target farm products and items like ketchup, nuts and video game systems.
U.S. industries oppose the use of tariffs.
„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 resulting from other trade disputes,“ the Distilled Spirits Council of the United States said.
Shares of French airplane maker Airbus fell slightly in early Tuesday trading. The plane maker is seeking a negotiated settlement and said more tariffs would only add to the problem.
„This is not creating a healthy environment for working toward a negotiated solution and risks a wide variety of industries on both sides of the Atlantic to arrive in a lose-lose situation,“ Airbus said in a statement.
Lighthizer’s office is seeking public comment and will hold a public hearing on the proposed additional tariffs Aug. 5.
Source: upi.com
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