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$20 Billion in U.S. Exports on EU Retaliation List in Aircraft Subsidy Dispute

Thursday, April 18, 2019
Sandler, Travis & Rosenberg Trade Report

The European Commission has published a preliminary list of U.S. products on which the EU could impose additional tariffs of up to 100 percent in a long-running transatlantic dispute over aircraft subsidies. The list covers hundreds of items, including aircraft, auto parts, tractors, handbags, video game consoles, chemicals, and food products, with an annual import value of $20 billion. Comments on this list may be submitted through May 31.

At an earlier stage of this dispute the EU asked the World Trade Organization for authorization to adopt up to $12 billion worth of countermeasures against the U.S. A final retaliation amount will be determined by a WTO arbitrator, and the Commission said it is taking steps toward requesting that the arbitrator resume its work. A final list of U.S. goods that will be subject to higher tariffs, which is expected to be smaller than the preliminary list, will be drawn up once the arbitrator issues its decision.

The EU’s list comes a week after the U.S. announced its own preliminary list of 317 EU goods on which additional tariffs of up to 100 percent could be applied later this year. Nevertheless, EU Trade Commissioner Cecilia Malmström expressed hope that the two sides could avoid retaliatory tariffs through discussions aimed at achieving “a fair outcome.”

For more information, please contact Kristen Smith at (202) 730-4965.

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