The Trump administration announced Tuesday that it was moving forward with a plan to seek retaliatory tariffs on European Union goods over the EU’s subsidies for Airbus. President Trump has previously said the U.S. is seeking tariffs on $11 billion worth of products.
The U.S. Trade Representative’s Office said Tuesday it had scheduled public hearings on May 15 and 16 on the proposed countermeasures. It had sought public comments on the matter last month.
“The WTO has found repeatedly that EU subsidies to Airbus have caused adverse effects to the United States,” the USTR said Tuesday. “USTR estimates the EU subsidies cause approximately $11 billion of harm in trade to the United States per year. The amount of countermeasures the United States is authorized to impose is currently subject to arbitration at the WTO, the result of which is expected to be issued this summer.”
In a tweet last month when the USTR began soliciting public comments on the matter, Trump said, “The World Trade Organization finds that the European Union subsidies to Airbus has adversely impacted the United States, which will now put Tariffs on $11 Billion of EU products! The EU has taken advantage of the U.S. on trade for many years. It will soon stop!”
The USTR has previously said that in addition to tariffs on EU space industry products, the Trump administration was also considering levies on EU cheese, olive oil, fruit juice, jelly, seafood, wine, and textiles.
The move comes as talks between the U.S. and EU over a new trade deal have been stalled at the preliminary stage for months. The U.S. has demanded that the EU’s farm subsidies and other policies that block market access be up for discussion, but the EU has adamantly refused. Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said Tuesday that the EU’s position will undermine the talks.
The U.S. and EU have been involved in a running dispute since 2004 over whether their respective aerospace industry policies towards Airbus and Boeing amount to unfair practices. The WTO said earlier this year that the U.S. had failed to eliminate subsidies for Boeing. The alleged subsidy was a $100 million tax break given to Boeing from Washington state, not a federal government policy. Last year the WTO found that the EU had been providing illegal subsidies to Airbus. WTO arbitrators have yet to set an amount in either case.
A ruling in the Boeing case isn’t expected until next year. The EU said last month it was considering fish, ketchup, tobacco, luggage, aircraft, tractors, and video game consoles for the levies against the U.S.
