EU preparing to slap US with tariffs on goods worth billions of dollars

EU preparing to slap US with tariffs on goods worth billions of dollars
  • Clock-gray 13:48
  • calendar-gray 13 April 2019

The European Commission is expected to present a draft list of tariffs on imported US goods, worth about $22.6 billion on April 17, numerous reports, citing European diplomats suggest, ONA reports citing Sputnik.

This list revealed will reportedly be larger than the expected request to the World Trade Organization. According to Reuters’ sources, the EU’s executive body intends to ask the WTO’s authorization for $12 billion in retaliatory measures. The WTO is expected to decide no earlier than March 2020 on the matter. At present the WTO is now reviewing a reciprocal case by the US against the EU, which will reportedly be over by June or July 2019.

The report comes hot on the heels of Donald Trump’s announcement that Washington will tax EU exports to the tune of $11 billion in response to the WTO’s conclusion that the bloc subsidized its aerospace giant Airbus in breach of the existing regulations. 

Washington's row with Brussels over subsidies for Airbus, a long-time rival of US competitor Boeing, dates back to 2004 when the US first turned to the WTO. In 2011, the WTO claimed that Airbus had received $18 billion in subsidies from the EU between 1968 and 2006. The US argues that the EU subsidies caused a decline in Boeing sales and led to it losing market share in countries across the world.

The EU, for its part, has accused the US of providing Boeing with unfair support, including through tax concessions, and dealing with the issue at the WTO. Brussels claims that Washington provided Boeing with more than $5 billion in subsidies between 1989 and 2006.

The new row escalated recently over the World Trade Organization's report, released in 2018, that the bloc had provided illegal subsidies to aerospace firm Airbus which caused "adverse effects" to US rival Boeing.

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