This week, the United States was granted permission by the World Trade Organization (WTO) to impose up to $7.5 billion of annual tariffs on goods from the European Union. This action provides the U.S. administration with the ability to tax wine, airplanes and other goods exported from Europe to the United States.
In May 2018, the WTO ruled that Europe had illegally subsidized several of Airbus’ models, which may have put a strain on Airbus’ American competitor, Boeing. The WTO announced this week that the value of the damages, totaling up to $7.5 billion, could be recouped through tariffs imposed by the United States. These tariffs can take effect no earlier than mid-October, as a WTO panel needs to sign off on the tariffs first.
While the United States Trade Representative has prepared lists of products that may be taxed, totaling up to $25 billion, the European Union has already drawn up its list of $20 billion in American goods it could tax in response.
If you have questions about how this could impact your imports or exports, please contact us or reach out to your Ascent Global Logistics representative directly.