Donald Trump vows to put tariffs on $11 billion of European Union products

Donald Trump vows to put tariffs on $11 billion of European Union products

Washington is seeking to retaliate for more than $11 billion worth of European Union subsidies to Airbus that the World Trade Organization has found cause "adverse effects" for the United States.

The US Trade Representative said the proposed move would be in retaliation for European Union subsidies to Airbus, the aeroplane and defence company, which the World Trade Organisation (WTO) have found to have caused adverse effects to the United States.

However, the trade dispute between the European Union and the United States is dwarfed by the $360 billion trade war Trump has instigated with China.

Last night US Trade Representative Robert Lighthizer said: "This case has been in litigation for 14 years, and the time has come for action. It will soon stop!"

The case, which has been grinding its way through the World Trade Organization (WTO) for nearly 15 years, is approaching the final stages of arbitration.

The EU has begun preparations to retaliate over Boeing subsidies, an EU official said on Tuesday (9 April), a day after Washington listed EU products it plans to hit with tariffs in their aircraft dispute.

"The amount is largely exaggerated and in any case will be defined by the WTO and not the U.S".

Trump in June previous year imposed tariffs of 25% on steel imports and 10% on imported aluminum from the EU.

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The EU fired back on Tuesday, saying the amounts claimed by the USA were "greatly exaggerated..."

"All this is leading to unnecessary trade tensions and shows the only reasonable solution in this long trade dispute is a settlement", added Ohler.

The EU responded with tariffs on about 2.8 billion euros' worth ($3.4 billion) of USA steel, agricultural and other products, from Harley Davidson bikes to orange juice. Trump said in a post on Twitter.

Some EU members, led by France, are already skeptical of the value of negotiations with the US, which were agreed to last July in a bid to avoid auto tariffs the USA has threatened. The EU has taken advantage of the USA on trade for many years.

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 USA -based Boeing-to help them gain an advantage in the world jet business.

The U.S. and EU have since July been negotiating how to scale back the tariffs, with Trump holding out the bigger threat of slapping tariffs on European cars - a huge industry in the region - should the negotiations not yield a result.

A Boeing spokesman said the company: "Supports the US trade representative and his team in their ongoing efforts to level the playing field in the global aircraft marketplace". "Instead of the USA making further threats, both sides should now keep a cool head and aim for de-escalation".

The tit-for-tat battle stretches back nearly 15 years, with both sides arguing their case at the World Trade Organization, the global arbiter of trading disputes, to set the size of any appropriate countermeasures to state subsidies.

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