Trade Cases
Trump Threatens Tariffs on $11 Billion of EU Imports in Aircraft Subsidies Dispute
Written by Tim Triplett
April 11, 2019
The Trump administration is threatening to impose tariffs of up to 100 percent on goods imported from the European Union as early as this summer in a long-running dispute over aircraft subsidies.
A preliminary list of goods that could be affected covers every major product group. Deadline for comments on the list is May 28. Importers of affected goods should accelerate efforts to mitigate the impact of any potential tariff increase, such as working to have their products omitted from the final list or considering alternative sources, reported the Washington law firm of Sandler, Travis & Rosenberg.
A World Trade Organization arbitrator is expected to issue a final decision this summer on the amount of countermeasures the U.S. may impose against the EU for its failure to fully withdraw subsidized financing to Airbus, previously found to be inconsistent with WTO rules and harmful to U.S. interests.
To enable the U.S. to “respond immediately” when that decision is announced, the Office of the U.S. Trade Representative is beginning the process of identifying EU products to which additional tariffs of up to 100 percent may be applied. The preliminary list includes 317 tariff lines when imported from any of the 28 EU member states as well as nine tariff lines covering helicopters, aircraft, and aircraft parts when imported from France, Germany, Spain or the United Kingdom.
The estimated import value of the goods on the preliminary list was approximately $21 billion in 2018. However, the final list will reflect only the amount of trade found to be adversely affected in the arbitrator’s decision, which may be higher or lower than the $11.2 billion the U.S. has requested. Retaliatory tariffs imposed on goods included in the final list will only be lifted “when the EU ends these harmful subsidies,” stated USTR.
USTR is inviting public input on any aspect of the proposed retaliation, including (1) products that should be retained, removed or added; (2) how high tariffs should be raised; (3) the aggregate level of trade to be covered by additional tariffs; and (4) whether higher tariffs might harm U.S. stakeholders, including small businesses and consumers. Comments on these issues are due by May 28. USTR is also holding a hearing May 15 in Washington, D.C.
Tim Triplett
Read more from Tim TriplettLatest in Trade Cases
Leibowitz: Thoughts for the holidays
At holiday time, it’s customary to think about what’s happened during the year gone by and what to hope for (or brace for) in the next.
Fitch warns more tariffs will pressure global commodity markets
“New commodity-specific tariffs, mainly on steel and aluminum products, could widen price differentials and divert trade flows,” the credit agency forewarned.
Commerce increases import duties on Korean galv, plate
The Commerce Department is raising the import duties on imports of corrosion-resistant sheet and cut-to-length plate from Korea.
Leibowitz on trade: Why is protectionism so popular?
The world has had a few shocks recently. The CEO of a major health insurance company was gunned down in Manhattan. The 50-year Assad dynasty in Syria was pushed out less than two weeks after rebels started an offensive. And President-elect Trump is promising tariffs on everything a month before he takes office. But one shock has been taking place for a lot longer than the last few weeks. The 70-year consensus on trade hasn’t just been challenged. It’s been repudiated.
Ternium chief say Mexico tariffs ‘irrational’
Vedoya said the proposed tariffs are "an irrational measure that would harm both their own industry and ours."