October 3, 2019 Trade War Heats Up With Europe

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October 3, 2019 Trade War Heats Up With Europe

Author: sales@jsconnor.com

03-Oct-19

October 3, 2019 Trade War Heats Up With Europe

The World Trade Organization has ruled in favor of the U.S. in its claim that European countries are violating WTO rules with their subsidies provided to manufacture Airbus planes. The ruling allows the U.S. to impose up to $7.5 billion annually in tariffs to counter European failures to abide by previous WTO rulings against subsidies for Airbus.

This resulted in an announcement by the U.S late Tuesday that it will impose 25% tariffs on various products from specific European countries effective October 18, 2019. These include:

  • Irish and Scotch whiskeys
  • liqueurs and cordials from Germany, Ireland, Spain, Italy or the UK
  • wine and olives from Germany, France, Spain or the UK
  • various tools and welding equipment from Germany
  • numerous agricultural food products from most EU countries
  • printed books, lithographs and pictures from Germany or the UK
  • self-propelled machinery from Germany or the UK

New aircraft from Germany, France, Spain and the UK will be subject to 10% additional tariffs. More details can be found here EU tariff list.

The EU is threatening to respond with additional tariffs of its own on U.S. products. We are awaiting more details on the specifics of how these new duties on EU products will be implemented and if there will be a process to apply for exclusions or exceptions. We will keep you advised as more information becomes available.