Background

Effective Nov. 10 the European Union will impose higher tariffs on $4 billion worth of imports from the U.S. as part of a long-running transatlantic dispute over aircraft subsidies. U.S. Trade Representative Robert Lighthizer has previously claimed that the EU “has no valid basis to retaliate against any U.S. products” and warned that any EU imposition of tariffs would “force a U.S. response.”

The new tariffs include an additional 15 percent on large aircraft as well as an additional 25 percent on dozens of other goods, including certain live fish, seafood, cheese, sweet potatoes, nuts, fruits and fruit juices, vanilla, vegetable oils, molasses, cocoa powder, chocolate, ketchup, soups, alcoholic beverages, tobacco, essential oils, milk proteins, polyvinyl chloride, plastic film, synthetic paper pulp, trunks/cases/bags, cotton, front-end loaders, tractors, vehicle frames and forks, video and other games, and exercise equipment.

The European Commission said it remains willing to work with the U.S. to settle this dispute and to agree on long-term disciplines to aircraft subsidies. However, the Commission also said the U.S. “has not yet provided the basis for a negotiated settlement, which would include an immediate removal of U.S. tariffs on EU exports in the Airbus WTO case.” Those tariffs include 15 percent on large civil aircraft from the EU and 25 percent on about 150 goods from EU member countries valued at $7.5 billion annually.

For more information, please contact Nicole Bivens Collinson or Kristen Smith.

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