After the US was formally backed by the World Trade Organization (WTO) to impose tariffs on the EU due to illegal EU subsidies to Airbus, the EU is now threatening to retaliate with their own tariffs due to the unlawful aid to Boeing.
The US has imposed tariffs on USD 7.5 billion worth of European imports, effective from October 17. The new trade arrangement will see duties of 10% on new planes and 25% on food products including cheese, wine, whiskey and olive oil.
However, the EU has now said it would impose ‘tit-for-tat’ tariffs against the US. Cecilia Malmström, the EU’s Commissioner for Trade, said the EU would wait on WTO ruling in the case of illegal subsidies for Boeing before it would decide on its own retaliatory measures.
The EU has previously released a list of US products it could target including nuts (peanuts, almonds, pistachios), dried fruit (including raisins and prunes), citrus fruit and juices and fish products, among many others.