The reason is Airbus subsidies from the EU
The USA again threatens to impose punitive tariffs on European exports. The reason for this is disputes over illegal subsidies for Airbus, which have been levied by the EU. As a result, trade commissioner Robert Lighthizer presented a provisional list of punitive tariffs on goods worth around eleven million dollars.
In addition to products and components for the aviation industry, numerous other goods are also affected, such as various types of cheese, olive oil, oranges and seafood.
The USA has already filed its application for punitive tariffs with the World Trade Organization (WTO). A decision on this will soon be taken at the conciliation body there.
The eleven billion dollars are to compensate for the alleged annual damage caused by banned state aid for Airbus. The legal dispute has been unresolved for 15 years.
Breaches of rules on both sides
“The time for action has come,” Lighthizer announced. US tariffs will not be phased out until EU subsidies are lifted. The EU in turn sued the USA for illegal subsidies to Airbus rival Boeing. According to the ruling of the WTO, there have been rule violations on both sides, but the exact amount of damage has not yet been established.
At the end of March, a WTO Appellate Body ruled that Boeing could continue to receive state aid despite a previous ruling on banned subsidies. This also allowed the European Union to take retaliatory action. The trade dispute between Brussels and Washington could therefore escalate.
US President Donald Trump had previously imposed punitive tariffs on steel and aluminium imports from the EU, which immediately introduced countermeasures. Furthermore, it was announced months ago that the import barriers for European cars would be raised. This was a severe blow to German industry in particular. According to Trump, the USA is the victim of unfair trade agreements and pursues a strict “America First” policy.