U.S. wins $7.5bn sanctions against EU
October 3, 2019 - The Trump administration plans to impose tariffs on $7.5 billion worth of European imports – from gouda cheese to single-malt whiskey to large aircraft – beginning Oct. 18 to retaliate against illegal European Union subsidies for aviation giant Airbus.
The latest escalation in the administration’s tariffs will open a new chapter in the trade wars that are depressing the world economy and heightening fears of a global recession. It comes just as the Trump administration is in the midst of trying to negotiate a resolution to its high-stakes trade war with China.
The administration received a green light for its latest import taxes Wednesday from the World Trade Organization, which ruled that the United States could impose the tariffs as retaliation for illegal aid that the 28-country EU gave to Airbus in its competition with its American rival Boeing.
The WTO announcement culminates a 15-year fight over EU subsidies for Airbus, and is a record award for the trade body.
EU aircraft will face a 10% import tax; other products on the list will be hit with 25% tariffs. The administration insists that it has the authority to increase the tariffs whenever it wants or to later the products in its list.
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