The United States and Europe have accused each other of illegal aid to their respective aviation giants Airbus and Boeing (BA.N) to help them gain an advantage in the global jet industry. The war of words between the United States and Europe has lasted for many years.
"The World Trade Organization (WTO) has found that EU subsidies to Airbus have a negative impact on the United States. Now the United States will impose tariffs on 11 billion EU goods!" Trump tweeted, "The EU has been trading cheaply in the United States for many years, and this situation will soon end!"
U.S. Trade Representative Lethizer last day proposed a list of targets for tariffs on European Union goods, ranging from large commercial aircraft to dairy products and red wine, in retaliation for subsidies to the EU aircraft manufacturing industry. The final list is due out this summer.
In response, the European Commission earlier Tuesday said it would start working out a retaliation plan for Boeing subsidies.
"The EU Executive Committee has begun preparations so that the EU can act immediately on the basis of the arbitration body's decision on the power of retaliation in this case," a spokesman for the EU Executive Committee said. "The EU remains open to consultation with the United States on the premise that there are no preconditions and that it is committed to achieving a fair outcome."
Both sides have won a partial victory in claiming that Airbus and Boeing have been illegally subsidized. But opinions differ on the amount of subsidies and whether they have complied with earlier WTO rules.
Hot Model No.: