USA impose new tariffs on French and German goods because of Airbus-Boeing dispute

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The move was in retaliation for tariffs imposed by the EU, which it believes are unfair. (Representative)

Washington:

The United States announced on Wednesday that it would impose additional tariffs on French and German products as part of a long-running dispute over subsidies for aircraft manufacturers Airbus and Boeing.

The tariffs relate to “aircraft manufacturing parts from France and Germany, certain non-sparkling wines from France and Germany, and certain cognac and other grape brandies from France and Germany” added to the list of products taxed since 2019 in a statement from the US sales representative.

The move is a retaliation for the tariffs imposed by the European Union, which it considers unfair.

The decision is the latest turn in the 16-year aircraft subsidy trade war that has grown increasingly angry under the protectionist instincts of US President Donald Trump and comes off despite hopes for a ceasefire following the election of Joe Biden.

This year the EU was authorized by the World Trade Organization (WTO) to impose additional tariffs on American products.

However, Washington believes that this has been penalized by the calculation method chosen, which, according to the Trump administration, has resulted in excessive tariffs on American products.

“In implementing its tariffs … the EU used trade data from a time when trade volumes had been drastically reduced due to the dire effects of the Covid-19 virus on the global economy,” the USTR said.

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“The result of this election was that Europe was imposing tariffs on products far more than if it had taken a normal period of time. Although the United States explained to the EU the distorting effects of its chosen period, the EU refused to change its approach” the statement says.

As a result, the US “is forced to change its reference period to the one used by the European Union,” she continued.

The aviation feud precedes Trump, but Washington quickly seized the opportunity to impose tariffs of $ 7.5 billion on Europeans after it was also approved by the WTO last year.

Washington imposed punitive tariffs of 25 percent on iconic EU products such as wine, cheese and olive oil, and introduced a tariff of 15 percent on Airbus planes in March.

(Except for the headline, this story was not edited by GossipMantri staff and posted from a syndicated feed.)

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