Background

The U.S. is revising the list of European Union goods subject to additional tariffs in a long-running aircraft subsidy dispute and increasing the additional tariff on large civil aircraft. These changes will take effect March 5 and March 18, respectively.

For more information on these tariffs, please contact trade consultant Nicole Bivens Collinson at (202) 730-4956 or trade attorney Kristen Smith at (202) 730-4965.

Effective Oct. 18, 2019, the U.S. imposed additional tariffs of 25 percent on more than 150 goods imported from EU countries and 10 percent tariff on new aircraft from France, Germany, Spain, and the United Kingdom. This action followed a determination by a World Trade Organization arbitrator that the U.S. may impose up to $7.5 billion annually in countermeasures against the EU due to its failure to fully comply with a previous WTO ruling against subsidies it provided to aircraft manufacturer Airbus.

The Office of the U.S. Trade Representative had proposed to increase these tariffs to as much as 100 percent in a bid to increase pressure on the EU to eliminate the violative subsidies or reach a negotiated settlement with the U.S. Instead, however, USTR has decided to take only the following actions.

- effective with respect to goods entered or withdrawn from warehouse for consumption on or after 12:01 a.m. EDT on March 18, the additional tariff on aircraft will be increased from 10 percent to 15 percent

- effective March 5, prune juice (HTSUS 2009.89.40) will no longer be subject to the 25 percent additional tariff

- effective March 5, butchers’ or kitchen shipping or mincing knives (HTSUS 8214.90.60) from France and Germany and telescopic sights for rifles not designed for use with infrared light (HTSUS 9013.10.10) from Germany will be subject to the 25 percent additional tariff

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