Reuters
- Europe is preparing itself for the WTO to give America the go-ahead and hit the EU with $5 billion to $7 billion in tariffs, Bloomberg reported.
- In addition to aircraft parts tariffs could be placed on cheese, olives and pasta coming into the US as well as some types of whiskey.
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The European Union is expecting the Trump administration to receive the go-ahead to slap the bloc with up to $7 billion in tariffs on EU goods.
Bloomberg, citing unnamed European government officials, reported that the EU is bracing for a nod from the World Trade Organization. The dispute has been simmering since the Bush administration over European aid to Airbus, Bloomberg said.
The tariffs, which could come into effect this summer, will raise the costs of aircraft and helicopter parts, and also consumable goods like cheese, pasta, and olives as well as whiskey coming from the EU for European producers.
This comes after the Trump administration a year ago imposed tariffs on EU steel and aluminium over claims they posed a national security threat.
Read more: China, Mexico, now France: Trump just attacked ‘not fair’ French wine tariffs again
This could get uglier.
While the US Trade Representative estimated in the past EU subsidies to Airbus cause roughly $11 billion in economic harm to the US each year, the EU has a similar case pending against Boeing, with added goods from ketchup to gaming consoles resulting in a $12 billion retaliation plan, Bloomberg said.
The EU has also threatened a $20 billion tariff if Trump threatened to impose duties on European cars and car parts.
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Source: Business Insider – feedback@businessinsider.com (Yusuf Khan)