US loads its tariff gun in a duel with Europe
The United States and the European Union are preparing to impose titfor-tat tariffs on each other’s products, the latest escalation in a 14-year fight over government aid given to Boeing and European rival Airbus.
“The World Trade Organization finds that the European Union subsidies to Airbus has adversely impacted the United States, which will now put Tariffs on $11 Billion of E.U. products!” President Donald Trump said in a tweet Tuesday morning. “The E.U. has taken advantage of the U.S. on trade for many years. It will soon stop!”
The office of the U.S. trade representative said Monday night that it was preparing a list of European products to tax as retaliation for European subsidies to Airbus, which the World Trade Organization ruled were illegal in May 2018. That prompted the European Union to announce that it was readying a list of tariffs to counter U.S. subsidies to Boeing.
The moves come amid tense trade relations between the United States and Europe, which are engaged in a battle of tariffs after Trump’s decision last year to tax European steel and aluminum. Trump has repeatedly threatened to impose tariffs on European cars and car parts if the European Union does not agree to better trade terms for U.S. products, and Europe has said it will retaliate on U.S. goods if Trump follows through.