The U.S. is targeting Europe with tariffs

Posted by Emvertex

As us trade talks with China draw to a close, the us has turned its trade focus to Europe, proposing tariffs on $11bn of eu imports in response to longstanding eu subsidies for aircraft maker Airbus. The European Union hit back, saying the us figure was “overblown” and was prepared to retaliate, raising transatlantic trade tensions again.

The United States trade representative (USTR) on Thursday proposed tariffs on $11 billion worth of European Union imports, including commercial aircraft, cheese and other agricultural products, as well as ski suits and some motorcycles, to counter damage caused by eu subsidies for air travel.

The threat of tariffs will not be implemented until the WTO allows them this summer, USTR said. It was a rare show of U.S. government trust in President Donald trump’s broadside against the WTO. The WTO found in May last year that airbus’s a380s and a350s received illegal subsidies that hurt Boeing’s sales.

The eu said the figures cited by the us were “overblown” and that it was preparing retaliatory tariffs. Airbus said the us tariff threat was unwarranted and revealed that the eu would take “” much larger” “measures against the us.

It also reignited transatlantic trade tensions after the United States and the European Union agreed in July to temporarily halt a trade war. The move comes as the European Union is close to authorizing the European commission to negotiate a tariff cut for industrial goods with the trump administration, but the latest development could complicate negotiations.

The trump administration’s tariff threat is a “double whammy” for Europe’s slowing economy as the news hits confidence, hurting investment and reviving demand. Financial times columnist Ferdinand Giugliano said trade disputes between the U.S. and Europe are no less important to the global economy than a u.s.-china trade conflict.

A trade war would also cause long-term damage to the United States. If the United States imposes tariffs on European products, it will be American consumers who will pay the bill, and it will weaken the influence of the United States on Europe. Once the dissatisfaction of European countries with the United States continues to rise, it is more likely to reshuffle the global strategic relations.


Via:Money.udn.-News