Europe Can Impose Tariffs on U.S. in Long-Running Aircraft Battle
The World Trade Organization gave the European Union permission to tax up to $4 billion of American products annually in return for subsidies given to Boeing.
Tariffs would be especially painful for Boeing, which is struggling from a pair of devastating crises.Credit...Lindsey Wasson for The New York Times
ByAna SwansonandNiraj Chokshi
Oct. 13, 2020
WASHINGTON — The World Trade Organization on Tuesday to impose tariffs on $4 billion worth of American products annually in retaliation for illegal subsidies given to the U.S. plane maker Boeing, a move that could result in levies on American airplanes, agricultural products and other goods.
The decision, which stems from a 16-year fight before the global trade body, follows a parallel case that the United States brought against Europe over subsidies to its largest plane maker, Airbus. Last year, the Trump administration imposed tariffs on European planes, wine, cheese and other products after the W.T.O. gave the United States permission to retaliate on up to $7.5 billion of European exports annually.
It remains to be seen whether the new tariffs will ultimately persuade the United States and Europe to come to a negotiated settlement that would lift the levies, or merely inflame relations and result in higher costs on businesses and consumers on both sides of the Atlantic. The European Union has repeatedly appealed to the United States to remove its tariffs, but American officials say Europe the necessary actions to stop its Airbus subsidies.
The tariffs will not go into effect immediately. The European Union needs to request authorization from the W.T.O. to impose the levies, which it can do at an Oct. 26 meeting at the earliest. The European Commission last year issued of American products that it could choose to tax, including aircraft, chemicals, citrus fruit, frozen fish and ketchup.
https://www.nytimes.com/2020/10/13/business/economy/boeing-europe-tariffs-trade.html
The World Trade Organization gave the European Union permission to tax up to $4 billion of American products annually in return for subsidies given to Boeing.
Tariffs would be especially painful for Boeing, which is struggling from a pair of devastating crises.Credit...Lindsey Wasson for The New York Times
ByAna SwansonandNiraj Chokshi
Oct. 13, 2020
WASHINGTON — The World Trade Organization on Tuesday to impose tariffs on $4 billion worth of American products annually in retaliation for illegal subsidies given to the U.S. plane maker Boeing, a move that could result in levies on American airplanes, agricultural products and other goods.
The decision, which stems from a 16-year fight before the global trade body, follows a parallel case that the United States brought against Europe over subsidies to its largest plane maker, Airbus. Last year, the Trump administration imposed tariffs on European planes, wine, cheese and other products after the W.T.O. gave the United States permission to retaliate on up to $7.5 billion of European exports annually.
It remains to be seen whether the new tariffs will ultimately persuade the United States and Europe to come to a negotiated settlement that would lift the levies, or merely inflame relations and result in higher costs on businesses and consumers on both sides of the Atlantic. The European Union has repeatedly appealed to the United States to remove its tariffs, but American officials say Europe the necessary actions to stop its Airbus subsidies.
The tariffs will not go into effect immediately. The European Union needs to request authorization from the W.T.O. to impose the levies, which it can do at an Oct. 26 meeting at the earliest. The European Commission last year issued of American products that it could choose to tax, including aircraft, chemicals, citrus fruit, frozen fish and ketchup.
https://www.nytimes.com/2020/10/13/business/economy/boeing-europe-tariffs-trade.html
