The European Union announced higher tariffs on $4 billion worth of U.S. products, including agricultural exports, industrial goods, and aircraft on Monday in an escalating dispute over government support of the airplane industry on both sides of the Atlantic Ocean. The Trump administration already has imposed higher tariffs on European exports, such as Gouda cheese and French wine.
“We have made clear all along that we want to settle this long-running issue,” said Vladis Dombrovskis, vice president of the European Commission. “Regrettably, due to lack of progress with the United States, we had no other choice but to impose these countermeasures.” Dombrovskis urged the United States to remove its tariffs “so we can put this behind us” through a negotiated settlement, “a win-win for both sides, especially with the pandemic wreaking havoc on our economies.”
The new tariffs of 15 percent on aircraft and 25 percent on a variety of agricultural and industrial products would take effect on Tuesday, said the EU, “thereby strictly mirroring the counter-measures imposed by the United States.” Each side won WTO cases that alleged the other gave unfair subsidies to airplane manufacturers Boeing and Airbus and each had WTO permission to impose retaliatory tariffs.
In its announcement of the higher tariffs, the EU did not spell out the targets. Last October, it published a list of potential products, including frozen fish and shellfish, dried fruit, tobacco, rum and vodka, handbags, motorcycle parts and tractors, reported German broadcaster Deutsche Welle.