US to impose tariffs on EU goods over aircraft subsidies row

The US is poised to impose import tariffs on European Union (EU) goods worth $7.5bn in response to an ongoing row over subsidies given to Airbus and Boeing.

Washington was yesterday given the go-ahead by the World Trade Organization (WTO) to impose the tariffs, which it will put in place on October 18.

Goods included in the tariffs include certain types of alcohol, clothing, tools, food and aircraft, amongst others.

A tariff of 10% will be applied to aircraft, while a 25% duty will be placed on other items.

In response, the EU has drawn up a list of US exports worth a collective $20bn that it proposes it will place tariffs on, which the WTO will decide upon in the coming months.

It is hoped that an agreement can be reached over aircraft subsidies to avoid an escalation of the dispute, which started 15 years ago when Boeing filed a complaint with the WTO.

Air Cargo News sister title Flight Global says that Boeing’s complaint centred on repayable launch aid from EU member states, which Airbus insists is not a subsidy in the same fashion as grants or tax breaks.

Airbus has alleged, in turn, that Boeing benefited from support through various federal, state and local authorities.

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