President Trump said Tuesday that the United States would impose $11 billion worth of tariffs on products from the European Union in retaliation for EU subsidies of the aircraft maker Airbus.
“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!” Trump tweeted.
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!
— Donald J. Trump (@realDonaldTrump) April 9, 2019
The U.S. Trade Representative’s Office had announced Monday that it had started the process to institute tariffs on Airbus subsidies under Section 301 of the Trade Act, based on findings by the World Trade Organization. The U.S. estimates the harms from subsidies at $11 billion though the final number is subject to the WTO’s arbitration.
The tariffs would be imposed after the WTO completes arbitration, which is expected by this summer.
“This case has been in litigation for 14 years, and the time has come for action. The Administration is preparing to respond immediately when the WTO issues its finding on the value of U.S. countermeasures,” said U.S. Trade Representative Robert Lighthizer. The USTR has released a list of proposed goods that would be subject to the levies, most of which are in the aerospace sector.
The U.S. first raised a WTO challenge regarding Airbus subsidies in 2004. In 2011, the WTO determined that the company had received $18 billion in subsidies from 1968 to 2006. The U.S. alleges that the EU has failed to remove the subsidies in the years since.
The announcement comes as the U.S. and the EU are trying to start trade talks later this year. Both sides agreed to talks last year, but have yet to settle on date and have struggled to reach agreement on what they will even talk about. The White House is demanding that the EU put its agricultural policies up for negotiation but EU officials have refused to allow that. The U.S. has threatened to institute 25% tariffs on auto and auto parts imports.
