WTO arbitration decided yesterday that US can move forward to impose some USD 7.5B in tariffs on EU goods annually, to counteract years of European loans and subsidies to Airbus. US Trade Representative hailed that as the “largest award” in WTO history, and nearly twice the largest previous award.
US will now impose tariffs on a range of imports from EU member states, with the bulk of the tariffs being applied to imports from France, Germany, Spain, and UK. 10% tariffs would be applied on large civil aircraft, 25% on agricultural and other products. USTR also said that “The US has the authority to increase the tariffs at any time, or change the products affected.”
Robert Lighthizer also noted in a statement that “the United States will begin applying WTO-approved tariffs on certain EU goods beginning October 18. We expect to enter into negotiations with the European Union aimed at resolving this issue in a way that will benefit American workers.”
