US to impose tariffs on $7.5 billion exports from Europe over Airbus issue

Boeing Airbus
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The US is planning to impose tariffs on $7.5 billion worth of exports from Europe as soon as October 15 after the World Trade Organization (WTO) ruling on the Airbus subsidies issue.

A senior US Trade Representative official announced the plan to place tariffs on the exports from Europe after the WTO ruled that the US could target goods from EU nations because they had failed to comply with an earlier ruling regarding government subsidies for Airbus.


This decision could further increase the effects of the trade wars as US President Donald Trump attempts to form an agreement with China.

The dispute between the European and US governments over subsidies to Airbus-manufacturer Boeing goes all the way back to 2004 when EU authorities revealed that the company had received $19 billion in unfair subsidies from federal and state governments. The US government followed suit with a similar filing that year.

EU Trade Commissioner Cecilia Malmström said: “Our readiness to find a fair settlement remains unchanged. But if the US decides to impose … countermeasures, it will be pushing the EU into a situation where we will have no other option than do the same.”


She claimed that the EU had shared proposals with the US as recently as July regarding “a new regime on aircraft subsidies” but has yet to receive a response.

The original proposal of the US is to impose up to 100% tariffs on $25 billion worth of European items, including new aircraft from France, Germany, Spain and the United Kingdom, where the Airbus is produced. Other items included in the list are cheeses, wines and meats, olive oil, olives and pasta.

With the WTO decision, the senior US Trade Representative official said that aircraft will be subject to a 10% tariff, and a variety of other goods with be subject to a 25% tariff.