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US increasing tariffs on Airbus planes to 15 percent from 10 percent: US Trade Representative

Airbus says higher U.S. tariffs on EU planes will harm U.S. airlines, consumers



US increasing tariffs on Airbus planes to 15 percent from 10 percent. AFP

The US Trade Representative said late Friday that it would increase the duty it had imposed on European aircraft to 15 percent from 10 percent, effective March 18. It also removed prune juice for the list of taxed items, and added a 25 percent tax on French and German butcher and kitchen knives. According to NYT reports.

According to a notice accompanying the latest development, the United States remains open to a negotiated settlement on current and future EU subsidies to Airbus.The annual value of the goods subject to tariffs would remain at $7.5 billion, as before, the trade representative said.

The tariffs are part of a 15-year-old complaint over subsidies European governments gave plane maker Airbus, which put its American competitor, Boeing, at a disadvantage.

In October last year (2019), the World Trade Organization granted the United States permission to try to recoup its losses by taxing as much as $7.5 billion of European exports annually. 

Those tariffs are expected to continue until Europe removes its subsidies or the two governments come to a negotiated resolution.

The airplane dispute is just one irritant in an increasingly fraught trading relationship with Europe.

The United States and the European Union remain at odds over France’s plan to tax American technology companies. European officials have also been angry that the United States has effectively paralyzed the W.T.O. by refusing to sign off on new appointees to a crucial appeals panel.

Airbus says higher U.S. tariffs on EU planes will harm U.S. airlines, consumers



The U.S. government’s decision to raise tariffs on European-built aircraft will hit U.S. airlines already facing a shortage of aircraft and complicate efforts to reach a negotiated settlement with the European Union, Airbus (AIR.PA) said. Reuters reported.

The European planemaker said it would continue discussions with its U.S. customers to “mitigate effects of tariffs insofar as possible” and hoped the U.S. Trade Representative’s office would change its position.

“USTR’s decision ignores the many submissions made by U.S. airlines, highlighting the fact that they – and the U.S. flying public – ultimately have to pay these tariffs,” the company said in a statement.






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