After receiving a green light from the World Trade Organization, U.S. President Donald Trump is set to impose tariffs on $7.5 billion of goods coming from the European Union on October 18th.
Due to the European subsidies for Airbus which violate international trade rules, the WTO ruled on Wednesday that the U.S. could impose duties as high as 100 percent on 7.5 billion in goods. The award represents the largest in the history of the WTO, France 24 reports.
According to a senior administration official, the actual rates will be substantially lower than 100 percent. The official stated that a 10 percent tariff would be imposed on EU aircraft, while industrial and agricultural products would face tariffs of 25 percent.
The duties will mostly affect products from France, Germany, Spain, and the UK.
The European Union has threated to retaliate with comparable tariffs against US goods, but the European Commission stated that it would look to reach a settlement while the WTO determines what kind of tariffs it could levy on the US, a decision that’s expected to be reached next year.
The number one trade negotiator for the US mentioned that he expects to begin a dialogue with officials in Brussels to resolve the issue. However, Trump has described the ruling as a “big win” for the US.
“We’re having a lot of wins at the WTO,” Trump asserted. “All of those countries were ripping off the United States for many years and they know I’m wise to it.”
In a statement, US Trade Representative Robert Lighthizer said, “For years, Europe has been providing massive subsidies to Airbus that have seriously injured the US aerospace industry and our workers.”
“We expect to enter into negotiations with the European Union aimed at resolving this issue in a way that will benefit American workers,” he added.
The Office of the U.S. Trade Representative is expected to publish an official list of E.U. goods to be tariffed sometime later this week. In 2018, the US imported $488 billion worth of goods from the EU. Conversely, US exports to the EU totaled $319 billion.