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Trade War with the EU on the Horizon?


Following over a decade of litigation, the World Trade Organization has confirmed that the U.S. is entitled to impose counter-measures in response to illegal subsidies extended by the EU to Airbus, a competitor of Boeing. The WTO decision will allow the U.S. to impose tariffs on $7.5 billion in imports including wine, cheese, whisky, clothing and other industrial products.


U.S. trade representative Ambassador Robert Lighthizer noted, “We expect to enter into negotiations with the European Union aimed at resolving this issue in a way that will benefit American workers”. The Administration apparently will not impose tariffs on the full $7.5 billion allowable in terms of the WTO decision but a tariff on EU automobiles and parts is under consideration. 


The Government of France announced that it will respond to the U.S. tariffs with retaliatory measures suggesting initiation of a new trade war that we do not need now or in the future.