JAKARTA (TheInsiderStories) — United States (US) is increasing tension with the European Union (EU), as Trade Representative proposed a list of Europe’ products, such as passenger helicopters, various cheeses and wines, ski-suits, and certain motorcycles to be imposed with tariff. This is a retaliation act caused by EU’ subsidies to Boeing Co., estimated worth US$11.2 billion damage.
US Trade Representative’ (USTR) office cited the World Trade Organization’s (WTO) finding that the aid to Airbus, Boeing’s rival, has repeatedly caused adverse effects to the US.
The EU and US have been battling for 14 over mutual claims of illegal aid to plane giants Boeing and Airbus, with parallel cases at the WTO. The USTR considered the case has been ongoing for too long, and the time has come for action.
“Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft. When the EU ends these harmful subsidies, the additional US duties imposed in response can be lifted,” said US Trade Representative Robert Lighthizer in a written statement.
The WTO said last year it would evaluate a US request to slap billions of dollar worth of sanctions on European products in response to a ruling that the EU had doled out the illegal subsidies to the aircraft. The USTR would announce a final product list after a WTO arbiter evaluates the claims, which is expected to be this summer.
This tariff impose would give another sentiment to global economy. Especially, US and EU together comprise 46.6 percent of the world economy.
Previously, US President Donald Trump also threatened to impose tariff by 25 percent for Mexican cars production, while giving one-year warning. Trump demanded Mexico to stop migrant and illegal drugs flow to the country.
“If the drugs don’t stop, Mexico can stop them if they want to, we are going to tariff the cars. The cars are very big, and if that doesn’t work we are going to close the border,” Trump said last week.
Putting tariffs on Mexico-built autos would risk hurting US companies including General Motors Co. and Fiat Chrysler Automobile NV, which import key models from the country including Chevrolet, GMC and Ram full-size pickups. The US imported 41 percent more vehicles last year than in 2014, according to Commerce Department data.
All these tariff threatens come amid the nearly end trade war with China. US top economic adviser Larry Kudlow mentioned that the negotiations are closer and closer to a trade deal. Both countries top officials would be talking again this week via teleconferencing.
We know that, US-China trade war has given a large hit to global economy.
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