The United States has started imposing new import tariffs on European products valued at 7.5 billion dollars. Purchases of European airplanes in the US are taxed at a rate of 10 percent, while other products face a 25 percent tariff.
Earlier this month, the World Trade Organization (WTO) ruled after years of proceedings that Europe had illegally provided subsidies for the development of the European passenger aircraft Airbus. As a result, Washington is now allowed to take countermeasures.
The European Union has called on Washington not to impose penalties because a similar case is underway at the WTO, this time from the EU against the US, regarding American financial support to the US aircraft manufacturer Boeing. A ruling on this is expected in the first half of 2020.
The EU is also threatening tariffs worth several billion euros on airplane parts as well as on tomato ketchup and game consoles. If new US import tariffs are imposed, the European Union will have no choice but to implement the same measure, said EU Trade Commissioner Cecilia Malmström earlier. She also stated that she still hopes to reach a balanced agreement with the US.
Initially, US President Trump wanted to impose import duties on EU products for a much larger amount. According to him, this would immediately solve many other trade problems between the United States and the European Union, but such a measure would be too harsh at this time. According to Trump, the US is currently not ready to impose more tariffs.
Earlier this month, the US was given the green light to impose tariffs on goods from the European Union. This measure affects, among others, the French and Spanish wine industries and the Scottish whisky sector. Italian wine companies escape unscathed, but Italian cheese makers are affected.
The World Trade Organization (WTO) officially gave the green light to impose the tariffs earlier this week. The measure impacts the French and Spanish wine industries as well as the Scottish whisky sector. Italian wine companies are spared, but cheese producers there are hit hard.
According to critics, Trump is trying to sow division within Europe with this move. France and Spain have requested financial assistance from the European Commission. The Scotch Whisky Association shipped approximately 1 billion pounds worth of Scotch to the US last year. But with a 25% import tariff, the whisky trade is under heavy pressure.