The governments of most EU countries have already supported the tariffs and their validity could be determined at Monday’s meeting of EU trade ministers. The introduction of tariffs was approved by the World Trade Organization (WTO) at the end of last month.
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Customs are the latest step in a transatlantic dispute over aid to aircraft manufacturers that has been going on for 16 years. The US has previously imposed tariffs on European goods due to subsidies by European aircraft manufacturer Airbus.
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The EU did not introduce tariffs immediately after the WTO’s approval due to the US presidential campaign. However, on Tuesday, election day, EU governments formally approved tariffs. Now they have to decide on their timing. According to diplomats, tariffs could take effect on Tuesday or Wednesday next week.
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For juice and some spirits
Tariffs will affect American aircraft and their components, fruit, nuts and other agricultural products, orange juice, some spirits and other goods from construction machinery to tables for casinos. The European Commission has said it is fine-tuning what it considers its retaliatory rights in the event that a friendly solution cannot be reached with Washington, including the immediate suspension of US tariffs.
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Democratic presidential candidate Joe Biden is close to winning elections in the United States, but nothing is decided. Even in the event of Biden’s victory, current President Donald Trump will remain in office until January 20, leaving plenty of time to increase tariffs on European goods imposed in a similar case due to Airbus. US Trade Representative Robert Lighthizer warned last month that any tariffs from the EU would force a US response. Trump then threatened with a harder blow.
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Washington argues that there is no legal basis for the introduction of tariffs by the EU because subsidies for Boeing have been abolished. However, European officials say that only the WTO can decide on compliance, which last year allowed tariffs.
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If Biden wins, he is expected to work to settle disputes with Brussels and try to unite with the EU in the fight against China. In negotiations for retaliation for subsidies for aircraft manufacturers, a friendly solution could thus be found as a gesture of goodwill on the part of the United States.
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