United States to increase duties on European Union aircraft to 15%

United States to increase duties on European Union aircraft to 15%

In October, the World Trade Organization (WTO) had permitted the USTR to impose tariffs on United States $7.5 billion worth of good from European countries.

The US' additional 10-percent tariff targeted the import of large European civil aircraft from Europe, which mainly consist of Airbus planes.

It's mainly targeted at giant European plane manufacturer Airbus.

Airbus reacted to the decision of the Office of the United States Trade Representative (USTR) with a statement, saying it "deeply regrets" the decision to increase tariffs that "further escalates trade tensions between the US and the European Union, thereby creating more instability for US airlines that are already suffering from a shortage of aircraft", in reference to the grounding of the Boeing 737 MAX for the past eleven months.

The Airbus statement said the tariffs create "more instability for USA airlines that are already suffering from a shortage of aircraft".

"Our basic position is clear: we reject any unilateral increase in customs taxes", it said in a statement.

"Customs taxes are ultimately harmful to everyone, including the U.S.".

Last October the WTO said the U.S. could legally impose tariffs on £5.7 billion of European products in retaliation for illegal government subsidies to Airbus.

The move followed a ruling by the World Trade Organisation (WTO), where the U.S. won the case against the European Union over subsidies the bloc gave to Airbus.

Washington imposed punitive taxes on $7.5 billion in European products after the World Trade Organization (WTO) gave the United States a green light to take retaliatory trade measures against the EU over its subsidies to Airbus. The award was the largest in WTO history - nearly twice as large as the previous record of $4.04 billion set in 2002.

"Airbus has and will continue to push for a negotiated settlement to this 15-year-long dispute." .

Chad Bown, a senior fellow at the Peterson Institute, said: "The Trump administration's threat of a tariff "carousel" - shifting even one new product onto a list hit with new import taxes - generates even more of the uncertainty that haunts American business and workers".

DISTILLED SPIRITS COUNCIL OF THE UNITED STATES, in a statement on Friday on the long-running trade dispute between the USA and the EU.

But a transatlantic trade peace has proved elusive and United States officials say the EU's overtures have been unacceptable.

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