Some US$4billion worth of US exports to the European Union are to receive hefty punishment tariffs in response to the US’ subsidization of its plane maker, Boeing.
The BBC reports that some taxes on US imports are already in the offing and will come into effect on Tuesday after the World Trade Organization gave the go-ahead for the punishment tariffs last month.
last year, the US had similarly imposed tariffs on EU goods in a trade war between the world’s most traditional politico-trade allies.
The EU is said to be open to resolving the issue amicably with many looking forward to a belligerent Donald Trump making way for President-elect, Joe Biden.
EU Trade Commissioner Valdis Dombrovskis is quoted as saying the EU wants to see both sides now remove the tariffs, which are a result of a long-running feud overstate support provided to Boeing and European rival Airbus.
“Removing these tariffs is a win-win for both sides, especially with the pandemic wreaking havoc on our economies,” Mr Dombrovskis said.
“We now have an opportunity to reboot our transatlantic co-operation and work together towards our shared goals.”
The fight over aircraft subsidies for Boeing and European rival Airbus pre-dates Donald Trump’s time in office, but trade tensions between the two traditional allies have grown particularly strained during his tenure.
Last year, the WTO said the US was justified to retaliate against the EU on $7.5bn worth of goods for the support granted to Airbus. It made a similar ruling in October in favour of the EU over the support offered to Boeing.
In recent months, both sides have taken steps they say correct the offending programmes. But Mr Dombrovskis said there had been no progress toward a settlement.
“We have made clear all along that we want to settle this long-running issue. Regrettably, due to lack of progress with the US, we had no other choice but to impose these countermeasures,” he said.
The EU tariffs will affect American aircraft, agricultural produce and industrial goods, reports the BBC