More Tariffs Proposed For EU Goods

The U.S. Trade Representative’s (USTR) office in Washington has published a list of $4 billion worth of European Union goods to target in retaliation for European aircraft subsides. The tariffs cover 89 products, including meat, cheese, pasta, fruits, coffee, whiskey, cast-iron tubes, and pipes. It adds to a list of EU products valued at $21 billion that the USTR targeted for tariffs in a list published in April.

The tariffs proposed by the Trump administration are subject to public consultation in the United States and arbitration at the World Trade Organization (WTO). The USTR said a public hearing on the additional list of products will be held Aug. 5. Over 40 individuals testified about the products included on the initial list at a public hearing on May 15 and 16.

Washington has been locked in a dispute with the European Union since 2004 over subsidies to two of the world’s biggest airplane manufacturers. EU authorities said Boeing received $19 billion in unfair subsidies from federal and state governments between 1989 and 2006. The USTR estimates the EU subsidies to Airbus cause approximately $11 billion in economic harm to the U.S. annually. The WTO has handed down favorable rulings to both sides since then.

The WTO is expected to decide this summer on the amount of countermeasures the U.S. can impose. Senior EU officials expect the U.S. to move forward with the tariffs once the WTO authorizes it. A spokesman for the European Commission said that Europe could retaliate in the Boeing case.

The EU has already readied retaliatory tariffs of its own. In April, preliminary list of $12 billion in U.S. goods to be targeted by the tariffs was published. Included on the wide-ranging target list were ketchup, nuts, video game consoles and bicycle pedals, along with farm products from areas that help form President Trump’s political base.