Trump threatens more tariffs against EU

Trump threatens more tariffs against EU

Trump threatens more tariffs against EU

The WTO has found that the European Union provided Airbus with subsidies for almost 4o years.

"The EU remains open for discussions with the U.S., provided these are without preconditions and aim at a fair outcome", the spokesperson added.

Once implemented, the proposed tariffs will pile onto existing USA levies on European goods, including the 25% and 10% duties on imports of steel and aluminium introduced by Trump past year, which prompted the EU to impose over $3 billion in retaliatory tariffs on United States goods including bourbon whiskey, Harley-Davidson motorcycles and Florida orange juice.

Airbus said it saw no legal basis for the USA move and warned of deepening transatlantic trade tensions.

"The amount is largely exaggerated and in any case will be defined by the WTO and not the U.S". Trump said on Twitter.

United States trade representative, Robert Lighthizer, said: "This case has been in litigation for 14 years, and the time has come for action".

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"This case has been in litigation for 14 years, and the time has come for action", he said in the statement.

The case, which has been grinding its way through the World Trade Organization (WTO) for nearly 15 years, is approaching the final stages of arbitration. "It will soon stop!"

U.S. Trade representative Robert Lighthizer claims the subsidies inflict roughly $11 billion worth of damage on Boeing and the U.S. economy.

The threat from Washington came amid a fragile truce between the European Union and the USA after President Donald Trump angered Europe a year ago by slapping duties on steel and aluminum imports and threatening new ones on cars.

The EU is already facing USA tariffs on its steel and aluminum exports and Trump has repeatedly threatened to hit EU cars with punitive duties. An Airbus spokesman said it had taken measures to comply with "relatively minor" outstanding requirements required by the WTO and that U.S. talk of $11bn worth of damage from European Union subsidies to Airbus was excessive. Many of its key suppliers lost between 0.7 percent and 1.2 percent, though it could have been worse and most of Europe's big bourses clawed back to level.

Airbus is headquartered in Toulouse, France, and also has locations in the United States, including engineering centers in Wichita, Kansas, and Mobile, Alabama, a training center in Miami, and headquarters in Herndon and Ashburn, Virginia. "The figure quoted by USTR is based on US internal estimates that have not been awarded by the WTO".

Some EU members, led by France, are already skeptical of the value of negotiations with the US, which were agreed to last July in a bid by the EU to avoid auto tariffs Trump has threatened.

Fabiana Fedeli at Robeco sees the latest moves as tactical. The European aircraft maker said there was no "legal basis" for the US' tariff plans, and warned that the bloc would consider "even greater countermeasures".

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