US threatens EU with more tariffs amid aircraft subsidy row

Imports and Exports | 3 July 2019

A disagreement over aircraft subsidies could have a knock-on effect for EU and American businesses trading together.


The US has stepped up its disagreement with the European Union over aircraft subsidies by extending a list of the products it is threatening to impose tariffs on.

Its US Trade Representative's (USTR) office said this week that a further 89 products have been added to the existing list, including cheese, paste fruit, coffee and whiskey.

This means a total of $25 billion (€27.8 billion) worth of EU goods are now at risk of having additional levies applied, on top of the $21 billion worth of exports that had already been targeted by the USTR in April.

It is likely to be bad news for any businesses trading with America, as any such move would add significant costs to their existing budgets. 

The row is separate to the trade wars with other nations including China and dates back to 2004, when the EU said Boeing had been receiving billions of dollars of unfair subsidies from federal and state governments since the late 1980s.

In the same year, the US government hit back with a similar claim over European subsidies to Airbus.

The World Trade Organization must now consider the proposed tariffs and deliver its verdict later this summer.