The World Trade Organization gave the European Union permission to impose tariffs on $4 billion worth of American products annually in retaliation for illegal subsidies given to the U.S. plane maker Boeing, a move that could result in levies on American airplanes, agricultural products and other goods. The decision comes after the Trump administration, last year, imposed tariffs on European planes, wine, cheese and other products after the the W.T.O. gave the United States permission to retaliate on up to $7.5 billion of exports annually.
It remains to be seen whether the new tariffs will ultimately persuade the United States and Europe to come to a negotiated settlement that would lift the levies, or merely inflame relations and result in higher costs on businesses and consumers on both sides of the Atlantic. The European Commissioner for Trade hopes that the U.S. will now drop the tariffs imposed on E.U. exports last year - "if this does not happen, we will be forced to exercise our rights and impose similar tariffs". For now experts suggest, that both sides are waiting until the election is settled to re-engage, and depending on the outcome we could see a ratcheting up on tensions before any potential deepening of trade ties.
Article: https://www.nytimes.com/2020/10/13/business/economy/boeing-europe-tariffs-trade.html
Jan Mueller
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