US proposes extra tariffs on EU goods over Airbus-Boeing spat

The US decided to add more goods from the European Union to a list of imports that could be hit with retaliatory tariffs as part of its long-running dispute with Airbus over alleged government subsidies.

The US Trade Representative’s office in Washington on Monday published a list of $4bn-worth of EU exports that could be targeted.

According to the US administration, EU subsidies to Airbus inflict approximately $11bn in economic damages to the US each year.

The products were added to the $21bn of EU products first targetted in April and the additional $4bn in tariffs will be subject to a public hearing on 4 August, the USTR said.

Products on the list include various foodstuffs such as meat, cheese, pasta and whiskey, and products including iron tubes and pipes.

“The final list will take into account the report of the WTO Arbitrator on the appropriate level of countermeasures to be authorized by the WTO,” USTR said Monday.

The Distilled Spirits Council of the United States criticized the Trump administration’s latest tariff threats and warned they would jeopardize US jobs and hurt consumers.

“We strongly oppose the inclusion of distilled products in the proposed retaliation list,” said spokeswoman Lisa Hawkins.

“US companies - from farmers to suppliers to retailers - are already being negatively impacted by the imposition of retaliatory tariffs by key trading partners on certain US distilled spirits ... and these additional tariffs will only inflict further harm,” she said.

The EU could respond with retaliatory tariffs of its own against Boeing. Also in April, Brussels published its own preliminary $12bn list of US goods that it might hit in response to what it said were Washington's own subsidies for the airplane manufacturer.

Airbus has in the past called for a negotiated settlement.

Unlike some other trade disputes, the US is pursuing its case against Airbus through the existing multitalateral trade dispute settlement mechanisms in place at the World Trade Organisation, but it was feared that Washington's decision to block the appointment of nominees to the WTO's appeals panels could paralyse their ability to settle trade disputes by the end of the year.