The U.S. government announced that it will impose tariffs on products imported from the European Union from October 18, following the World Trade Organization (WTO) ruling which decided in favor of Washington in a prolonged trade dispute.
According to the list distributed by the Office of Foreign Trade, among the products that will be affected are fresh cheese, green olives, olive oil, wine and pork products of Spanish, German and British origin.
Other products affected will be yoghurts, butter, cherries and peaches from most EU countries.
The Foreign Trade Office explained that the countries most affected by this measure will be France, Germany, Spain and the United Kingdom, the “four countries responsible for illegal subsidies.”
In a long-awaited ruling, the WTO determined that Washington could impose trade sanctions worth 7.5 billion dollars a year, or 6.9 billion euros, on the EU, but the Foreign Trade Office explained that, for the time being, tariffs of 10% will be imposed on the large civil aircraft that the EU sells to the US and 25% on certain agricultural products.
The United States President, Donald Trump, responds with these taxes to the subsidies granted by European governments to Airbus for the A350 and the A380 development.
Trump considered the WTO ruling to be “a big win”. In addition, the merit of that victory was attributed to ensuring that the organization wanted the president to be “happy” because it knows that he is not favorable to free trade.
The U.S. won a $7.5 Billion award from the World Trade Organization against the European Union, who has for many years treated the USA very badly on Trade due to Tariffs, Trade Barriers, and more. This case going on for years, a nice victory!
— Donald J. Trump (@realDonaldTrump) October 3, 2019
A tariff war?
The WTO dispute, which began 15 years ago, could lead to a tariff war between the EU and the US, although the White House has left the door open for negotiations and has asked the organization to set up a meeting on 14 October to formally authorize US levies.
The WTO determined that U.S. aircraft maker Boeing lost the equivalent of $7.5 billion in potential sales due to illegal subsidies given by EU governments to its European rival Airbus, another of the world’s largest aircraft manufacturers.
In this context, France, Germany, Spain and the United Kingdom offered Airbus financing at a lower interest rate than the market rate, allowing the company to develop some of its most recent and advanced models.
MAIN PRODUCTS TO BE HIT
SPAIN
- Pork products
- Olive oil and green olives
- Fresh cheese
- Wine (not carbonated) under 14% alcohol, under 2 liters
- Liqueurs
EUROPEAN UNION
- Swiss cheese Gruyère, Pecorino, Romano, Reggiano, Parmesan, Provolone and Stilton.
- Yoghurt and butter
- Preserved cherries, fruit, vegetables and fruit juices
UNITED KINGDOM
- Single-malt, Irish and Scotch whiskies
- Wool and cashmere sweaters, pullovers, sweatshirts, waistcoats
- Fine wool suits
- Pyjamas
- Bed linen and cotton blankets
- Pork products
- Olive oil and green olives
- Fresh cheese
- Wine (not carbonated) under 14% alcohol, under 2 liters
- Liqueurs
- Sweet biscuits, waffles and wafers
GERMANY
- Scissors, knives, metalwork tools and coffee
- Pork products
- Olive oil and green olives
- Fresh cheese
- Liqueurs
- Wine (not carbonated) under 14% alcohol, under 2 liters
- Sweet biscuits, waffles and wafers
FRANCE
- Olive oil and green olives
- Wine (not carbonated) under 14% alcohol, under 2 liters
ITALY
- Liqueurs
IRELAND
Liqueurs
Source: Financial Times
Translated by: José Esinoza
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