[Paris / Brussels 16th Reuters]-The World Trade Organization (WTO) approved the US tariff on European products over the conflict between the European Union and the US over subsidies for aircraft. Two people revealed.
WTO's decision is expected to be announced in the week of September 30. It could lead to EU retaliation.
Europe and the United States argued about subsidies for the European aircraft giant Airbus <AIR.PA> and US Boeing <BA.N>, and confronted about 15 years ago. Preparing for mutual tariffs.
The US government calls for up to 100% tariff on European products worth $ 11.2 billion annually. Tariffs include aircraft and aerospace parts from the UK, France, Germany, Spain, etc., as well as wine, cheese and luxury goods from EU countries.
The final tariff scale will be determined by the WTO arbitration body. The US then needs to make a final list from a list of items worth $ 25 billion that could be subject to customs duties.
According to officials, Airbus aircraft and its parts are likely to be initially subject to tariffs, regardless of the scale of approval.
In response to reports, Airbus stock prices closed at 3.3%. French luxury brand LVMH (Moet Hennessy Louis Vuitton) <LVMH.PA> is 3.9% lower and Hermes <HRMS.PA> is 2.8% lower.
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