4 points to understand a possible trade war between Europe and America

The trade dispute between the European Union and the United States dates back to 2004.

The Spanish daily Poblico says the EU has long expected the United States to agree to negotiate, but as of October 18, Washington will impose tariffs on more than 1,500 European products. This includes, in particular, the four heavily weighted EU countries, such as Spain, Germany, France and the United Kingdom.

1. Why might conflict break out at this time?
Since the 15-year conflict erupted, the United States, under pressure from the World Trade Organization's Boeing aircraft manufacturer, has denounced EU aid to Airbus because, in its view, it was excessive.

At the time, France, Germany, Spain and the United Kingdom offered Airbus financing at a lower interest rate than the market, allowing the company to develop some of the latest and most advanced aircraft models.

The World Trade Organization (WTO) confirmed that Boeing lost $ 7.5 billion in potential sales due to illegal subsidies by European Union governments to Airbus. For this reason, the Trump administration is empowered at this time to impose customs duties on this amount.

2. Is there a possibility of agreement?
The prospect of a deal is possible, but there is little hope since President Donald Trump - known for his positions on free trade - still lives in the Oval Office.

According to the Spanish newspaper, any mistake by the World Trade Organization is a "great victory" for Trump.

But the White House left room for negotiation and asked the World Trade Organization to set a meeting on October 14, the paper said.

France was the first European country to warn of action if Trump applied the announced tariffs or did not negotiate a reduction, so we have to wait for the next few days.

3. What products will be affected by the trade war?
As of October 18, tariffs on large civil aircraft sold by the European Union to the United States will see a 10 percent increase, and about 25 percent on some agricultural products such as oil, olives, cheese and many others, according to a list distributed by the Foreign Trade Office. . The aforementioned products are the most influential on Spanish exports, according to the report "Poblico".

4. What about Spanish agricultural exports?
The United States is Spain's main trade destination outside the EU for exports of its food and agricultural products, worth nearly 2 billion euros ($ 2.2 billion) in trade, mainly including olive oil, wine, canned cheese and canned olives. It is also the main source of imports by about one billion euros, including nuts, soybeans and alcoholic beverages.

Therefore, the increase in tariffs announced by the United States will affect Spanish exports.