Trump Administration Announces Tariffs on EU Imports

Share

On Wednesday, the World Trade Organization ruled that the USA did have a right to hit the European Union with retaliatory tariffs over the subsidies that the EU had already supplied to Airbus. The award is the largest in WTO history.

The US decision to impose tariffs on French wines will penalise American consumers who will see a sharp rise in prices while severely hurting French producers on their largest export market, exporters said. He said that his company may have to cut imports of Italian cheese by as much as 30 percent because of the tariffs. Though wine and spirits produced by LVMH and Diageo PLC are among those affected by the levies, the 25% tariff was lower than analysts worst case scenario. Shares in the French distillers Rémy Cointreau and Pernod Ricard also rose.

"Finally, after 15 years of litigation, the WTO has confirmed that the United States is entitled to impose countermeasures in response to the EU's illegal subsidies", U.S. Trade Representative Robert Lighthizer said in a statement.

The new USA list does spare some Airbus parts including sections of fuselage that are used to assemble A320s for American buyers at a plant in Mobile, Alabama.

Some Alabama officials credited their connections with the Trump Administration for removing the aircraft parts from the list of taxable items.

The officials said European Union aircraft would face a 10 tariff, while agricultural and industrial products would receive a 25 percent tariffs.

The EU is planning to push back.

Seven die of vaping-related illness
Jennifer Layden from IL also thanked the patients and family members of those that came forth to help this investigation. Officials are investigating samples taken from these patients in an effort to determine what is causing the outbreak.

The move escalates uncertainty for the USA and global economies at a time when Trump's trade war with Beijing is weighing heavily on businesses, particularly manufacturers.

Airbus has said this would lead to a "lose-lose" trade war and has published a video stressing its contribution to the US industry through local assembly plants and 4,000 direct jobs. But they will likely have an impact on agricultural and other sectors of the European economy, at a time when other tariff battles have dented global trade growth. So Americans probably shouldn't be surprised that only about a month after the president threatened to place tariffs on French wine-shortly after which France said they believed the issue had been resolved-the administration has announced that, yes, tariffs on French wine-and a laundry list of other delicious products-are definitely coming on October 18, 2019.

According to The New York Times, the tariffs are part of a long-running disagreement over subsidies given to Airbus and are meant to help recoup some of the losses American-based Boeing incurred because of European Union trade practices.

Unite Scottish secretary Pat Rafferty said: "A reckless and destructive tit-for-tat trade war will significantly harm jobs in the Scotch whisky industry".

"Earlier today, we received confirmation from Airbus of very positive news that parts and components used at the final assembly plant in Mobile will not be subject to tariffs", said George Talbot, spokesman for the city of Mobile.

Before any tariffs can be imposed, the WTO's Dispute Settlement Body must formally adopt the arbiter's report, in a process expected to take between 10 days and four weeks.

The U.S. also wanted to discuss the damage those practices might inflict on Boeing, Airbus's chief U.S. competitor for building large commercial aircraft.

Share