The Atlanta Journal-Constitution
EU targets U.S. coal, farming
European Union set to levy $11.2 billion tariffs on American exports.
The European Union is readying tariffs on billions of dollars of American exports aimed at politically important industries for President Donald Trump and his Republican allies in Congress.
The EU has asked the World Trade Organization to give it the green light to place levies on $11.2 billion of U.S. products over a long-running aircraft subsidies dispute. A ruling is expected as soon as July and the EU is planning to target coal producers, farmers and fisheries, in addition to the makers of aircrafts and parts.
The potential flashpoint comes at a sensitive time, with companies struggling under virus-induced recessions and as the November presidential election draws sensitive industries into ongoing trade conflicts.
While the EU has asked for a multibillion-dollar award in the case, in which the U.S. was found to have given illegal subsidies to Chicago-based Boeing Co., Washington has said it expects the WTO to issue a much narrower ruling, with only about $300 million at stake.
The sheer number of pending disagreements between the EU and the U.S. means a dispute could escalate quickly into a trade war. Earlier this month, Trump renewed a threat to hit European cars with levies, a move that would draw immediate retaliation from the bloc, and he has prepared to hit countries including France, Spain and Italy with tariffs if they institute a tax on international technology companies.
The Boeing case comes less than a year after the WTO delivered the U.S. a record $7.5 billion retaliation award in response to the EU’s illegal subsidies to Airbus SE. The U.S. has since levied 15% duties on Airbus aircraft and 25% tariffs on a range of European consumer exports, such as Scotch whisky and French wine.