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U.S. May Modify List of EU Goods Subject to Additional Tariffs in Aircraft Subsidy Case

Friday, June 26, 2020
Sandler, Travis & Rosenberg Trade Report

The Office of the U.S. Trade Representative is considering modifying the list of European Union products (including products from former EU member the United Kingdom) that are currently subject to additional tariffs due to the EU’s failure to fully comply with a previous World Trade Organization ruling against subsidies it provided to aircraft manufacturer Airbus.

Input may be submitted by July 26 on (1) the removal from or maintenance on the list of products currently subject to these additional tariffs, (2) the increase up to a level of 100 percent in the additional tariff on specific products, (3) the imposition of additional tariffs on specific products included in two separate additional lists (comprising products previously considered for additional tariffs as well as newly considered goods), and (4) the rate of additional tariff of up to 100 percent to be applied to any products drawn from these additional lists.

The current list of products subject to additional tariffs includes, among many others, cheese, oranges, mandarins, clementines, and lemons from the EU or the UK; new aircraft from France, Germany, Spain, and the UK; single-malt Irish and Scotch whiskies from the UK; sweaters, pullovers, sweatshirts, performance outerwear, suits, pajamas, swimwear, blankets, and bed linen from the UK; axes, tweezers, pliers, metal cutting shears, pipe cutters, screwdrivers, knives, hand tools, and welding equipment from Germany;  printed books, lithographs, and pictures from Germany or the UK; self-propelled machinery from Germany or the UK; and olives and wine from France, Germany, Spain, or the UK.

Products that could potentially face additional tariffs as a result of USTR’s review include, among many others, certain helicopters and aircraft, fish, cheese, various fruits, coffee, chocolate, olives, olive oil,  beer, vodka, sparkling wine, various chemicals, polyester staple fiber, high tenacity polyester yarn, cotton twill fabric, carpets and other textile floor coverings, laminated fabrics, knitted ski-suits other than of manmade fibers, ceramic products, glassware, glass fiber yarn, table knives, wall clocks, and lifting machinery.

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

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