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🚨 The EU-US Trade fight is about to get nastier. The WTO has allowed the US to hit the EU with billions in punitive tariffs over Airbus subsidies.
Four EU officials told POLTICO that the WTO on Friday ruled in Trump’s favor.
Four EU officials told POLTICO that the WTO on Friday ruled in Trump’s favor.
✈️ The ruling is still confidential until the EU and the US have had the chance to comment and delete sensitive business information.
✈️ Officials said the US would implement the tariffs within weeks.
✈️ Officials said the US would implement the tariffs within weeks.
✈️Trump’s administration has already prepared a retaliation list.
✈️That has EU and industry officials worried because it includes tariffs on Airbus planes.
✈️That has EU and industry officials worried because it includes tariffs on Airbus planes.
✈️The list also includes tariffs on Airbus parts - Commission believes US is explicitly aiming to disrupt Airbus’ supply chain by targeting parts needed to construct its A320 model in Mobile, Alabama.
✈️In short: Bad news for Airbus and EU-US trade talks.
✈️The EU has a parallel case against US subsidies for Boeing and expects a ruling in eight months.
✈️The EU has a parallel case against US subsidies for Boeing and expects a ruling in eight months.
🚨NEW: EU thinks it has found a way to retaliate quickly if the US imposes tariffs.
politico.eu/pro/how-brusse…
politico.eu/pro/how-brusse…
Brussels has old WTO awards it has won on unrelated disputes in the drawer, and is considering using them to impose duties on US goods if Washington doesn’t agree to negotiate a settlement.
The fact that EU is even considering this kind of ‘asymmetrical’ retaliation is in itself surprising.
👉It comes back to Trump’s blockage of the WTO dispute settlement system. politico.eu/article/wto-ga…
👉It comes back to Trump’s blockage of the WTO dispute settlement system. politico.eu/article/wto-ga…
Why, you ask?
Because by blocking the WTO dispute settlement, Trump can indefinitely keep retaliating against Airbus, even if the EU lifts the subsidies.
Because by blocking the WTO dispute settlement, Trump can indefinitely keep retaliating against Airbus, even if the EU lifts the subsidies.
The EU thinks a first instance panel in October will rule that it has removed some of the illegal subsidies (those for the A380) - but Washington can appeal that ruling into limbo.
Officials briefed on the discussions said the EU was considering using old WTO awards that it is currently not retaliating on - such as a $4 billion award it won over US export subsidies in the early 2000‘s.
