November 10, 2020

European Union Assessing Duty on US Products

European Union Assessing Duty on US Products

The inability to resolve a long-standing dispute with the United States over aircraft subsidies has brought the European Union to proceed with up to $4 billion in tariffs on U.S. manufactured products.

The EU and the U.S. have been in dispute over the issue since 2006.  The WTO agreed last year that the EU did not follow the best trade practices when granting aid to Airbus.  Due to that decision, the U.S. imposed duties on $7.5 billion of imported goods from Europe.

Last month, the WTO ruled the U.S. didn’t comply with international rules when providing subsidies to Boeing which has now resulted in the EU proceeding with their tariffs against U.S. products.  The tariffs were to begin Monday, November 9, 2020 -  The list includes a fifteen percent tariff on Boeing airplanes and a twenty-five percent tariff on a sweep of products including tractors, frozen shellfish, gin, suitcases, video game consoles, cotton and salmon.

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