In new attack, Trump threatens more tariffs against European Union

U.S. President Donald Trump speaks to members of the media on the South Lawn of the White House before boarding Marine One in Washington D.C. U.S

U.S. President Donald Trump speaks to members of the media on the South Lawn of the White House before boarding Marine One in Washington D.C. U.S

President Donald Trump says the United States will impose new tariffs on more than $11 billion worth of exports from the European Union, after the World Trade Organization ruled a year ago the EU was illegally subsidizing aircraft maker Airbus.

A preliminary list of European Union goods facing additional USA duties includes everything from aircraft and aircraft parts to cheese and wine.

The amount of goods covered by the tariffs will have to be approved this summer by the World Trade Organization before it can take effect.

The United States is threatening to impose tariffs on European goods worth billions of dollars, intensifying a long-running dispute over aircraft subsidies.

While the size of the tariffs is small compared with the hundreds of billions the US and China are taxing in their trade war, it suggests a breakdown in talks with the European Union over trade at a time when the economy is already slowing sharply.

Robert Lighthizer, the USA trade representative, said in a statement on Monday night that the us had lost patience with what is now one of the WTO's longest running sagas.

"It will soon stop!" he wrote.

Whether the US gets the legal right to implement the new tariffs will depend on a ruling by the WTO, an organization based in Geneva that sets the rules for global commerce and settles disputes. Ruling back in May previous year, the WTO stated that Airbus had received illegal funding for its A380 and A350 models, adversely affecting Boeing's sales.

President Cleans House at DHS, Hoping to Solve Border Crisis
That compares with seven such departures in the first three years of the Obama administration and four for President George W. Nielsen's name will be added to the long list of those who have shuttled in and out of cabinet posts in the last two years .

Airbus and Boeing, backed by the European Union and the United States accordingly, are engaged in a 14-years strong trade dispute, with claims and counterclaims circling the World Trade Organization for years now. An Airbus spokesman said it had taken measures to comply with "relatively minor" outstanding requirements required by the WTO and that United States talk of $11bn worth of damage from European Union subsidies to Airbus was excessive.

Brussels was also reprimanded by the WTO during the Airbus-Boeing row, and the United States asked the WTO to determine the amount it could impose in sanctions against the European Union for failing to remove subsidies.

Aircraft and cheese are among the products that could be hit by tariffs, the US Trade Representative (USTR) said.

Trump tweeted on Tuesday complaining about the tariffs.

The EU is already facing US tariffs on its steel and aluminum exports and Trump has repeatedly threatened to hit EU cars with punitive duties. Trump said in a post on Twitter.

Because Europe has accused the US of subsidizing its own planemaker, Boeing. Some auto manufacturers, including Toyota's Jim Lentz, have warned that it could reconsider up to $750 million in US investments in five Southern states if the tariff talks aren't resolved. "The figure quoted by USTR is based on US internal estimates that have not been awarded by the WTO".

European planemaker Airbus said on Tuesday it saw no legal basis for the United States' move towards imposing trade sanctions on its aircraft and warned of deepening trade tensions.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.