WTO Approves $4 Billion In E.U. Tariffs On U.S. Goods In Aircraft Dispute

The tariff battle between the U.S. and E.U. has taken a new turn. According to a World Trade Organization ruling, the European Union may impose up to $4 billion in tariffs on U.S. goods, following a ruling that deems U.S. subsidies to Boeing Co. illegal. Reuters reports that U.S. and E.U. representatives were informed of the decision last Friday and that details will be published in the coming weeks.

The WTO decision, though substantial, is significantly lower than the $12 billion judgment the E.U. was seeking and also lower than the $7.5 billion judgment in favor of the U.S. that the WTO issued last year in a similar dispute about subsidies to European aircraft manufacturer Airbus SE. According to a report from Reuters, analysts are hopeful that this ruling could end the deadlock between the U.S. and E.U., and bring the two parties together for meaningful negotiations. In the short-term, however, U.S. exports of wine and spirits to the E.U. could be in for further tariff hikes.—Shane English

Tagged : Tariffs

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