The Trump administration may add or increase tariffs on EU products, including agricultural products, to combat subsidies from the EU to Airbus. According to CNBC, “The U.S. has long argued that subsidies to Airbus hurt American aircraft giant Boeing and that the EU’s efforts to comply with prior WTO rulings against the subsidies aren’t enough to even the playing field.”
In October 2019, the World Trade Organization authorized the U.S. to impose tariffs on $7.5 billion worth of EU goods. After this ruling, the U.S. placed a tariff of 25 percent on select agricultural products from Europe.
Soon, existing tariffs may be hiked up to a level of 100 percent for certain goods. These products include French wines, single-malt Scotch and Irish whiskey from Northern Ireland, and French and Italian cheeses.
Additionally, goods that were previously excluded from the October tariffs may have up to 100 percent tariffs placed on them. Depending on the country of origin, these products include more adult beverages, fruit pastes and purees, olive oil, whey protein concentrates, and many more items.
Robert Tobiassen, president of the National Association of Beverage Importers, is adamant that an increase to the existing 10 percent tariff on EU aircraft goods is the best way for the U.S. to deal with this trade matter, per Barrons.
The U.S. is a net importer of EU goods, with the value of imports in 2018 exceeding that of U.S. exports by $169 billion.
U.S.–EU trade balance by year
Source: Reuters/U.S. Census Bureau
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