EU adopts punitive tariffs on US products

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US aircraft Boeing 737 MAX 8

Photo: STEPHEN BRASHEAR / AFP

Notwithstanding the election of Joe Biden as US President, the EU will levy new punitive tariffs on a number of products from the US from Tuesday.

"Unfortunately, due to the lack of progress with the US, we had no other choice," said EU Trade Commissioner Valdis Dombrovskis.

The background to this is a decision by the World Trade Organization (WTO) in the longstanding subsidy dispute over the aircraft manufacturers Boeing and Airbus.

On Monday morning, Dombrovskis announced his readiness to impose punitive tariffs on the USA.

The EU will impose surcharges on US-made aircraft and other goods such as tractors, sweet potatoes, peanuts, tobacco and ketchup, reports the AFP news agency.

The US had previously set punitive tariffs on Airbus aircraft and EU products such as wine, cheese and olive oil.

Previously punitive US tariffs

A month ago, the WTO allowed the European side to impose punitive tariffs on US products worth four billion dollars a year in retaliation for illegal state aid to aircraft manufacturer Boeing.

Conversely, the USA had received permission to impose punitive tariffs of 7.5 billion dollars on EU products - because of illegal EU subsidies for the European Boeing competitor Airbus.

Brussels and the member states, especially Germany, had long tried to find a negotiated solution.

"We are ready to suspend or withdraw our tariffs at any time if the US suspends or withdraws its tariffs," said Dombrovskis.

But so far no such signals have come from Washington.

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bah / AFP