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WASHINGTON (Alliance News) - The US is proposing a list of EU products that will face additional tariffs to counterbalance subsidies for European aircraft following a recent World Trade Organization ruling.
The 15-year saga between the US and the EU over their main aircraft makers, Boeing Co and Airbus SE respectively, ended last month at the WTO, when the global trade body ruled that the US failed to stop some subsidies for Boeing.
The WTO previously declared European subsidies for Boeing's European rival Airbus illegal. In May 2018, it also found that the EU had failed to scrap its support for Airbus.
Final issues about the value of damage are still in arbitration.
"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 on Monday. The USTR estimates the harm from the EU subsidies as 11 billion dollars annually.
The move indicates that the US may be preparing for retaliation rather than a diplomatic solution.
The list of proposed items from various European countries ranges from helicopters, to food and fabrics. Some glass and metal products would also be subjected to new tariffs under the proposal, which must still undergo a public consultation process.