The European Union (EU) pledged to impose tit-for-tat tariffs against the US in a longstanding transatlantic dispute over illegal aid to aircraft manufacturers.
Malmstrom said the EU would apply its own levies on a range of US products ‘in due course’ as a result of unlawful aid to Boeing, signalling the bloc will hold its fire until the World Trade Organisation fixes the damages sum in a decision due next year. The EU has drawn up a plan for countermeasures worth $12 billion.
“This step leaves us no alternative but to follow through in due course with our own tariffs in the Boeing case, where the US has been found in breach of WTO rules,” said Malmstrom.
“The EU and the US have a joint responsibility to sit down and negotiate a settlement that is balanced and compliant with the WTO,” said Malmstrom.
Malmstrom added that imposing tariffs on each other serves nobody’s long-term interest, it will inflict very significant damage to the highly integrated supply chain of the aircraft sectors in the US and the EU and will result in collateral damage to many other sectors already suffering under the current trade tensions.
Europe has been gearing up for an escalation of the 15-year-old fight over aircraft subsidies while warning the Trump administration against resorting to tariffs and urging it to seek a negotiated solution, reported Bloomberg.