The US is increasing its punitive tariffs against the EU in the latest part of the 16-year-old quarrel over support for Airbus and Boeing.
EXPENSIVE DROPS: Donald Trump’s administration imposes increased punitive tariffs on some wine brands.
The United States is increasing the scope of its punitive tariffs on the EU as a result of the long-running dispute over support for aircraft manufacturers Airbus and Boeing.
In 2019, the United States imposed sanctions on a number of European goods worth approximately $ 7.5 billion, including French wine and Scotch whiskey. In November this year, the EU responded by imposing punitive tariffs on a number of US goods worth about $ 4 billion.
The US Trade Representative said on Wednesday that the new tariffs would be introduced because the EU spent a period of time affecting “significantly more products than would otherwise be covered”, and that the EU “must take some action to compensate for this injustice,” Bloomberg wrote.
The increased punitive duties will include certain brands of wine and cognac, as well as parts for use in aircraft production.
- This action is a hard blow for American companies. US restaurants and small businesses are already struggling to survive, and this decision will only ruin more jobs and close more doors, says Tribeca Wine Merchants CEO Ben Aneff, according to Reuters.
He is the leader of the American Wine Trade Alliance, and hopes that Joe Biden will be able to resolve the conflict.
The conflict of support
The years-long dispute began with a disagreement over state support for European Airbus, funded by the United Kingdom, France, Germany and Spain, and US support for US Boeing.
In 2006, the United States estimated that Airbus had received $ 22 billion in “illegal” state aid. The EU responded quickly by believing that American Boeing had received 23 billion in “illegal” support – and then the ball was in the court.