Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

US Proposes Tariffs Worth $11 Billion on EU Products


Tue 09 Apr 2019 | 12:55 PM
Yassmine Elsayed

By: Yassmine ElSayed

 

CAIRO, Apr. 9 (SEE) – The US is considering to impose tariffs worth $11bn of goods from the European Union in response to subsidies that support Airbus, media reports said.

The World Trade Organization (WTO) has found that the subsidies have an adverse impact on the US.

Aircraft and cheese are among the products that could be hit by tariffs, the US Trade Representative (USTR) said.

According to BBC, the Trump administration has been fighting trade battles on many fronts.

The move would mark an escalation in trade tensions between the US and the EU.

The USTR said the value of goods that would be targeted with tariffs was subject to arbitration at the World Trade Organization, the result of which is expected in a few months.

"This case has been in litigation for 14 years, and the time has come for action. The administration is preparing to respond immediately when the WTO issues its finding on the value of US countermeasures," said US Trade Representative Robert Lighthizer.

A preliminary list of goods, covering a wide range of items, has been issued for public consultation. For example, the following are being considered for additional tariffs if they come from any of the 28 EU states.

The proposed US tariffs would be imposed in addition to existing levies on European products.

Last year, the US started charging levies on the imports of steel and aluminium from key allies including the EU.

The EU imposed retaliatory tariffs on €2.8bn (£2.4bn)worth of US goods in June on products such as bourbon whiskey, motorcycles and orange juice.

Last month, US President Donald Trump threatened to impose tariffs on cars imported from the EU, if both sides cannot reach a trade deal.

The US is currently negotiating a trade deal with China, but tit-for-tat tariffs imposed by the two countries have already weighed on the global economy this year.