U.S. Readies Another $11 Billion in Tariffs on E.U. – The New York Times

The announcement on Monday stems from a separate dispute that began in 2004 related to government subsidies that Europe provides to Airbus, which is a rival to America’s Boeing.

Last May, the World Trade Organization found that Airbus had received illegal funding for several of its models. The United States requested the authority to impose retaliatory tariffs of $11.2 billion per year, and the two sides are awaiting a decision on the level of tariffs that America will be authorized to levy on the European Union.

In preparation for that decision, which is expected this summer, the United States announced Monday night that it was beginning to identify a list of European products to tax, so it could impose the duties as soon as the organization makes a ruling. The initial list of American levies would cover $11 billion of trade in products including airplanes, cheese, fish, wine, clothing, nails, pipes and clocks — the same dollar amount of harm that the United States Trade Representative estimates European subsidies cause each year.

“This case has been in litigation for 14 years, and the time has come for action,” Robert Lighthizer, the United States Trade Representative, said in a statement.

“Our ultimate goal is to reach an agreement with the E.U. to end all W.T.O.-inconsistent subsidies to large civil aircraft,” Mr. Lighthizer said. “When the E.U. ends these harmful subsidies, the additional U.S. duties imposed in response can be lifted.”


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