USA will ‘put tariffs on $11 billion of European Union products’

USA will ‘put tariffs on $11 billion of European Union products’

USA will ‘put tariffs on $11 billion of European Union products’

In addition it said it is considering imposing tariffs on products as diverse as swordfish, brandy and brooms from countries in the European Union. "It will soon stop!"

Uncertainty over tariffs and trade between the United States and China have dented business confidence and led corporate investment to dry up, said Hank Smith, co-chief investment officer at The Haverford Trust Co in Radnor, Pennsylvania. "When the European Union ends these harmful subsidies, the additional USA duties imposed in response can be lifted".

"Our ultimate goal is to reach an agreement with the European Union to end all WTO-inconsistent subsidies to large civil aircraft", USA trade representative Robert Lighthizer said in a statement.

The threatened American tariffs, which come after the WTO ruled in May that Airbus had received illegal funding for its A380 and A350 models, costing Boeing sales, would be implemented only after the WTO gave the final go-ahead this summer, the administration said, marking a rare show of faith in an institution that Trump himself has assailed.

The yen rose as traders favored the safe-haven currency in the wake of the United States proposal for tariffs on European goods.

U.S. Trade representative Robert Lighthizer claims the subsidies inflict roughly $11 billion worth of damage on Boeing and the U.S. economy.

Trump is considering whether to impose tariffs of up to 25% on European vehicle imports, a threat that has unnerved automakers in the industrial powerhouse of Germany.

The EU is already facing US tariffs on its steel and aluminum exports and Trump has repeatedly threatened to hit EU cars with punitive duties. "A big win!" Trump wrote on Twitter.

US Treasury Secretary Steven Mnuchin told lawmakers the Trump administration is preparing for the possibility of a "hard Brexit".

Eric Schweitzer, the head of the Association of German Chambers of Commerce and Industry, lamented the trade tensions.

The United States and Europe have been locked in a years-long spat over mutual claims of illegal aid given to plane giants-Netherlands-based Airbus and US -based Boeing-to help them gain an advantage in the world jet business.

Whether the US gets the legal right to implement the new tariffs will depend on a ruling by the WTO, an organization based in Geneva that sets the rules for global commerce and settles disputes. "The figure quoted by USTR is based on USA internal estimates that have not been awarded by the WTO".

The European Union is preparing retaliatory tariffs against the USA over subsidies to Boeing Co., significantly escalating transatlantic trade tensions hours after Washington vowed to hit the EU with duties over its support for Airbus SE.

The ongoing dispute over aircraft subsidies is occurring as Boeing is facing a weeks-long crisis over the worldwide grounding of its fleet of 737 Max aircraft while authorities investigate the cause of crashes of the jetliner in Indonesia and Ethiopia that killed all 346 passengers and crew members aboard the two aircraft.

Tariffs on European airplanes could in theory help Boeing and hurt Airbus, whose shares were down 1.5 per cent on Tuesday on a day when stock markets were trading higher.

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