United States threatens tariffs on $11bn of European Union goods
00:46, Apr 10, 2019
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European Commission finds the US proposal "greatly exaggerated" and is preparing its own list of products, which, likewise, include large commercial aircraft (hint: Boeing) and parts, Reuters reported on April 9, 2019, quoting a "source" inside the Commission.
The Trump administration released a 14-page list of European Union goods that could attract a higher tariff, including several symbolic targets such as "French cheese", roquefort cheese, wine, champagne, olive oil and seafood such as oysters.
After ending negotiations on the Transatlantic and Investment Partnership (TTIP), the proposed trade agreement between the USA and EU, Trump imposed steel and aluminum tariffs on the EU and a number of other countries.
The two sets of punitive measures are the latest twists in a 14-year-old dispute that the USA and European Union have fought at the World Trade Organization, with each side accusing the other of illegally subsidizing their main aircraft makers. "It will soon stop!"
President Donald Trump's administration has been embroiled many trade wars across the globe. The U.S. had in 2004 complained to the WTO, which sets global trade rules and settles disputes, that the European Union was providing unfair support to Airbus.
The proposed tariffs come almost 15 years after the USA first complained to the WTO that Airbus had widely benefited from billions of dollars in illegal subsidies.
The US government filed a similar claim that year over European subsidies to Airbus.
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The World Trade Organization has handed down favorable rulings to both sides, underscoring the complexity of the dispute.
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