US Hits Europe With New Tariffs On Aircraft Parts

U.S. trade officials on Wednesday announced its plan to increase tariffs on certain European Union products, including aircraft-related parts and wines from France and Germany, amid an ongoing civil aircraft dispute between Washington and Brussels.

According to the  Office of the U.S. Trade Representative (USTR) statement, “Aircraft manufacturing parts … certain non-sparkling wine and certain cognac and other grape brandies from France and Germany” will be subject to the new measures.’

The USTR did not say when the tariffs would take effect but noted that additional details would be “forthcoming.”

The new tariffs are the latest action in the 16-year U.S.-EU dispute over civil aviation subsidies involving European aircraft company Airbus SE and its U.S.-based rival Boeing Co.

The USTR on Wednesday stated that the EU had unfairly calculated tariffs against the United States allowed by a September World Trade Organization ruling in the dispute. “The EU needs to take some measure to compensate for this unfairness.”

Representatives for the European Union could not be immediately reached for comment on the USTR action.

According to DW report: The US government has now accused Brussels of making unfair decisions: “The EU must take action to redress this injustice,” the USTR said.

“In implementing its tariffs … the EU used trade data from a period in which trade volumes had been drastically reduced due to the horrific effects on the global economy from the COVID-19 crisis,” the statement said.

The result was that Europe placed tariffs on many more products than if it had “utilized a normal period” to calculate them, the office added.

“However, in order to not escalate the situation, the United States is adjusting the product coverage by less than the full amount that would be justified utilising the EU’s chosen time period.”

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