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EU-US Trade War Escalates Over Disputed Aviation Subsidies


(Jonathan Stearns, Kim Chipman & Shawn Donnan – Bloomberg)

The European Union is preparing retaliatory tariffs against the U.S. over subsidies to Boeing Co., significantly escalating transatlantic trade tensions hours after Washington vowed to hit the EU with duties over its support for Airbus SE.

The two sets of planned punitive measures are the latest twists in a 14-year-old dispute that the U.S. and EU have fought at the World Trade Organization, with each side accusing the other of illegally subsidizing their main aircraft makers. President Donald Trump’s administration on Monday said it would impose tariffs on $11 billion in imports from the EU because of the European aid.

The Office of the U.S. Trade Representative said that EU support for Airbus had caused “adverse effects” when announcing the new measures, which would target European goods including jetliners, cheese, wine and motorcycles. The EU called the $11 billion sum cited by the USTR “greatly exaggerated” and said preparations were underway to hit back. While the EU hasn’t disclosed the amount of American goods it would target, Airbus said the bloc would proceed with “far larger countermeasures against the U.S.” Click here to read more.

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