The European Union will impose tariffs on $4 billion in imports from the U.S. These tariffs are a part of the dispute over aircraft subsidies and serve as a punishment for U.S. subsidies for Boeing. These taxes have been authorized by the World Trade Organization and have taken effect on Nov. 10.
There has been a long-running fight over aircraft subsidies for Boeing and the European rival Airbus. Trade tensions between the U.S. and EU have worsened in recent years, after back and forth tariffs on items. However, there has been no progress towards a settlement.
The new tariffs include an additional 25 percent on dozens of goods including certain live fish, seafood, cheese, tobacco, alcoholic beverages, ketchup, fruits, nuts, cheese, cotton, tractors, vehicle frames, video games, and more products. The new tariffs also include an additional 15 percent on civilian aircrafts.
It is possible these tariffs may lead to retaliation from the U.S. as a response. EU officials claim they wish to work with the U.S. to settle the dispute. For further questions, please contact your Mohawk Global representative.