America has said it will increase the tariff rate imposed on aircraft to 15 percent from 10 percent on March 18. It comes as a part of a long-running dispute over which Washington deemed illegal subsidies were handed to Airbus from the EU in order to help outcompete American airplane maker Boeing. In a statement, the US Trade Representative stated it is leaving duties on other products, such as Scotch Whisky and wine that was French , to 25 percent.
Airbus has warned that the decision to increase tariffs by Washington”further trade tensions between the US and the EU”.
In a statement, the firm branded the decision”deeply” regrettable, adding it creates”more instability for US airlines which are already dealing with a lack of aircraft.
“Airbus deeply regrets USTR’s decision to increase tariffs on aircraft imported from the EU in addition to the choice to keep tariffs on goods from different sectors.”
It added the newest move”ignores the numerous submissions made by US airlines, highlighting the fact that they — and the US flying people — will finally have to pay these tariffs”.
The European Commission has begged Washington to come back to a”negotiated solution”.
The Brussels-based executive explained:’In our view the focus now should be about finding a negotiated solution to the aircraft disputes on the grounds of the tangible EU proposals for present subsidies and future disciplines in this industry.”
Germany’s finance ministry added:”Our basic position is clear: we reject any unilateral increase in customs taxation.
“Customs taxes are ultimately harmful to everyone, including the USA.”
Ursula von der Leyen, the president of the Commission, vowed to strike a deal with Washington after meeting President Trump within weeks.
The bloc has been clashing with the US for 15 years and once again the clashes continue as the US filed a dispute against the EU’s over Airbus subsidies.
Together with the WTO judgment that EU and the US were equally accountable, the EU filed after.
Chad Bown, a senior fellow in the Peterson Institute, said:”The Trump administration’s threat of a tariff’carousel’ — shifting even one new product onto a list hit with fresh import taxation — generates even more of the doubt that haunts American business and workers.
“Although there were several changes today, little was resolved, and the administration has made sure that much of this uncertainty will remain.”