The European Union is moving forward with slapping tariffs on $4 billion worth of US goods as a retaliatory measure against US subsidies on its aeroplane maker Boeing. The tariffs were authorized by the World Trade Organization in October and went into effect on November 10. It will affect American-made products such as PVC, tractors, ketchup, and orange juice. The EU said it shrill hoped to settle the dispute which saw the US slapping tariffs on European goods in 2019.
EU Trade Commissioner Valdis Dombrovskis said the EU wanted the removal of tariffs imposed by both parties which are results of a long-running dispute over state subsidies to Boeing and Airbus. A trade official said the US under Joe Biden’s presidency might be easier to restart trade negotiations with the EU. Dombrovskis said removing tariffs could be a relief for both economies which had been hit hard by the pandemic.
Under the trade dispute, the WTO said the US is justified to slap tariffs on $7.5bn worth of European goods for subsidies granted to Airbus. These tariffs are placed on some products, including European whiskeys, wines, and cheese. The WTO issued a similar ruling in October allowing the EU to levy duties on American goods for subsidies granted to Boeing. US airplanes imported to Europe will be taxed 15%. The EU will also levy 25% border taxes to a list of other products, including tobacco, tractors, cheddar cheese, orange juice, sweet potatoes, and ketchup.
