US Increases Tariffs on German and French Wines Over ‘Unfair’ Airbus Subsidies

The 16-year long battle between the US and the EU over aerospace subsidies to Boeing and Airbus has turned even more bitter, with the US announcing it will increase tariffs on several European goods.

According to Reuters, the US Trade Representative’s office (USTR) declared that it would raise dues on certain German and French spirits and wines as well as aircraft related parts, citing unfair EU subsidies to Airbus as the catalyst behind the decision. Although the USTR did not elaborate on when the new tariffs would take effect or their rate, it did note that additional details will be “forthcoming.”

Airbus and Boeing have been embroiled in a quarrel over subsidies that has spanned for more than 16 years, with no sign of resolution anytime soon. Tit-for-tat duties between the two have already affected $11.5 billion worth of trade, and will likely continue to escalate into 2021. Last year, the World Trade Organization (WTO) declared that the EU did not adhere to international rules when it provided Airbus with subsidies, and in response the US was allowed to impose levies on $7.5 billion worth of European goods.

Earlier this year though, the WTO also ruled that the US similarly failed to meet international regulations with its subsidies to Boeing, and in response allowed the EU to impose $4 billion worth of tariffs on American imports in November. However, the EU’s latest tariffs apparently did not sit well with Washington, with the US accusing the EU of unfair tariff calculations against Boeing aircraft and equipment. “The EU needs to take some measure to compensate for this unfairness,” the USTR said on Wednesday.

In response to the USTR’s latest tariffs, Airbus warned that it could backfire and end up hurting American workers in the long run. “USTR’s expansion of tariffs to include components for aircraft manufactured in the US— by American workers— is counterproductive in every way,” notes an Airbus spokesperson to Reuters. Likewise, the European Commission on Thursday said that Washington’s most recent move will only disrupt ongoing attempts to settle the 16-year-long running dispute.


Information for this briefing was found via Reuters and the US Census Bureau. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

EU Inflation Accelerates to 3.4% in September as Energy Prices Soar to Record-Breaking Highs

Price pressures across the EU have jumped by the most in 13 years, as ongoing...

Sunday, October 3, 2021, 11:05:00 AM

EU Proposes Ban on all New Cars Powered by Combustion Engines Come 2035

Gasoline and diesel-powered vehicles may soon become obsolete across the European Union, as regulators push...

Sunday, June 20, 2021, 11:03:00 AM

Macron’s Gambit: Far-Right Gains and Snap Elections Shake EU Landscape

French President Emmanuel Macron has been accused of gambling with France’s democracy after announcing the...

Monday, June 10, 2024, 11:38:00 AM

American Airlines Receives $5.5 Billion Taxpayer-Funded Loan from US Treasury as Air Travel Demand Remains Subdued

It appears that more government bailouts are en route for embattled airline companies, as the...

Sunday, September 27, 2020, 03:39:00 PM

Trump Unleashes 25% Tariff On EU: “They’re Formed To Screw The US”

In another episode on tariff threats, President Donald Trump has announced plans to impose sweeping...

Thursday, February 27, 2025, 09:32:00 AM