The EU Commission is calling on the US to end the billion-dollar import tariffs on aircraft imports from the EU and other products. "We insist that the United States immediately lift these unjustified tariffs," said EU Trade Commissioner Phil Hogan. If the government doesn't give in to Washington, European punitive measures could follow.
"If the United States maintains its tariffs on $ 7.5 billion European exports or decides to increase tariffs or apply them to new products, the European Union will act to exercise its own sanction rights," it said the Commission.
The EU has already drawn up a list of US products that are eligible for tariffs. A decision by the World Trade Organization (WTO) on certain illegal subsidies for the US aircraft manufacturer Boeing will soon create the legal basis for this, according to Hogan.
Airbus says it is now following WTO rules
In October, the United States had US $ 7.5 billion in tariffs on EU products in the dispute over state aid to Airbus and Boeing. This affects around 25 percent of wine from Germany and France, Parmesan from Italy and olive oil from Spain. In addition, a special tax of 15 percent applies to aircraft imports.
Airbus has taken the last step in settling the 16-year dispute over government subsidies at the WTO, the group said. The aircraft manufacturer now fully comply with their rules. Specifically, Airbus agreed with the governments of Spain and France to pay higher interest on government advances for the development of the A350 long-haul jets. The WTO saw this as illegal subsidies.
Airbus has come under pressure due to the Corona crisis as orders have slumped. Recently, the United States even considered further tariffs on products from Germany, France, Spain and the UK. They could hit, among other things, beer, chocolate, olives, and gin, according to a statement by the U.S. Trade Representative released in June. The goods selected would have had an import value of $ 3.1 billion in 2018.