EU Gets Approval to Slap American Goods With $4-Billion Tariff

EU Gets Approval to Slap American Goods With $4-Billion Tariff

The European Union (EU) was poised to win the right to slap worth $4-billion of tariffs on American goods in retaliation for the US government’s subsidies granted to plane-maker Boeing.

This after the World Trade Organization in a ruling on Tuesday gave its go-signal for the EU to impose taxes on said goods, only three weeks before the latter’s presidential election takes place, according to a report by Channel News Asia (CNA).

Among the potential goods subjected to tariffs range from wine spirits, suitcases, tractors, frozen fish, and a range of agricultural products including dried onions and cherries.

The WTO has already earlier approved a request for the US to tax worth $7.5 billion of European goods over its aid granted to Europe-based plane manufacturer Airbus.

Both parties have earlier signaled interest in settling the 16-year dispute but accused each other of not taking things seriously.

Washington has since repealed tax holidays granted to Boeing, while Airbus announced it will raise loan repayments for its A350 fleet to Spain and France in a bid to settle the matter.

It also argued that funding for its A380 aircraft was no longer relevant after it decided to discontinue the production of the largest fleet amid weak sales.

CNA also reported that the EU may be authorized to add another $4 billion tariffs to equate the total amount of taxes imposed by the US versus European goods.

The US said that the previous award, which allowed the EU to strike back against special tax treatment for US exporters but which the EU never implemented, was “no longer valid” because a measure creating the disputed system was repealed in 2006.

Photo from Flickr

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