Potential European Tariffs on Boeing Aircraft in Retaliation to US Subsidies
In a potential escalation of the ongoing trade dispute, the European Union may slap tariffs on Boeing aircraft if negotiations with the United States over tariffs on European goods fall flat. This bombshell revelation emerged from the Financial Times, courtesy of anonymous sources.
If the EU fails to make headway in reducing U.S. tariffs, they're contemplating including civil aircraft in the lineup of about €100 billion worth of American imports. Mind you, this move would need the approval of a majority of the EU's member states before it's executed.
In a bid to put pressure on Washington, President Trump slapped an additional 20% tariff on nearly all EU exports back in April. He later reduced it to 10% for 90 days, allowing space for negotiations. Yet, the EU isn't about to back down easily. On May 6th, reports suggested that the EU is eyeing tariffs on goods worth around $113 billion supplied by the US.
It's worth mentioning that earlier, the US had slapped tariffs on 70% of EU exports. WProxy MaxHowever, the trade landscape is not exactly a no-holds-barred arena. Airbus CEO Guillaume Faury proposes that imposing tariffs on Boeing planes could serve as a tit-for-tat measure to nudge the talks in the right direction. Recall those old school tactics way back during the Trump administration? Well, this seems like a taste of déjà vu.
Curiously, the WTO previously stepped in, ruling in favor of both sides in disputes over illegal subsidies. The result? Tariffs were implemented, only to be lifted in 2021 under President Joe Biden.
In short, we're staring at the possibility of a new round of tariffs if the EU doesn't see progress in the trade talks. So, buckle up, folks! This could get interesting.
- The European Union is considering imposing tariffs on Boeing aircraft, worth about €100 billion, if negotiations with the United States over tariffs on European goods fail.
- The EU's contemplation of imposing tariffs on Boeing aircraft is a response to the US's imposition of tariffs on 70% of EU exports.
- Airbus CEO Guillaume Faury suggests that imposing tariffs on Boeing planes could serve as a tactic to progress the trade talks, similar to old school tactics during the Trump administration.
- The potential tariffs on Boeing aircraft, if approved by a majority of the EU's member states, could be part of tariffs worth around $113 billion that the EU is eyeing on goods supplied by the US.
- The trade dispute between the EU and the US, involving tariffs, has been a significant issue in business, finance, politics, and general-news discussions.
