Friday 24 May 2019

Trump: US will put tariffs on £8.4bn of EU goods

A preliminary list of EU goods facing additional US duties includes everything from aircraft to cheese and wine.

Donald Trump said the EU ‘has taken advantage of the US on trade for many years’ (Jacquelyn Martin/AP)
Donald Trump said the EU ‘has taken advantage of the US on trade for many years’ (Jacquelyn Martin/AP)

By Darlene Superville, Associated Press

US President Donald Trump has said he will put tariffs on 11 billion dollars (£8.4 billion) worth of European Union cheese, wine and other goods to retaliate for what Washington says are improper subsidies to Airbus.

The office of the US trade representative released a preliminary list of EU goods facing additional duties that includes everything from aircraft and aircraft parts to cheese, wine and olives.

The list is subject to public comment in anticipation of an expected World Trade Organisation (WTO) ruling this summer that would be favourable to the US in a pending arbitration case.

The US says the WTO has repeatedly found that EU subsidies to European aircraft maker Airbus have caused “adverse effects” to the US, chiefly to Boeing, the American plane manufacturer.

Mr Trump, a critic of the WTO, tweeted that he “will now put Tariffs on $11 Billion of EU products! The EU has taken advantage of the U.S. on trade for many years. It will soon stop!”

The long-running dispute precedes the Trump administration.

The US had in 2004 complained to the WTO, which sets global trade rules and settles disputes, that the EU was providing unfair support to Airbus.

The WTO ruled last May that the EU had in fact provided some illegal subsidies to Airbus, hurting Chicago-based Boeing.

The EU has argued that Boeing has benefited from similar government support.

The US expects the WTO will say this summer that it can take countermeasures to offset the EU subsidies.

Press Association

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