The US Government has decided to keep 15% tariffs in place on Airbus aircraft and 25% tariffs on all other European products.
The US Trade Representative (USTR) has modified the list of products subject to the World Trade Organisation (WTO) authorised additional duties as required by the country’s law.
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As part of this, USTR has left the tariffs on aircraft and other goods unchanged. The number of products subject to countermeasures will remain unchanged at $7.5bn.
However, it will remove some items from Greece and Britain from the tariff list while adding the same amount of trade from Germany and France.
The modifications will come into effect on 1 September.
US Trade Representative Ambassador Robert Lighthizer said: “The EU and member states have not taken the actions necessary to come into compliance with WTO decisions.
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By GlobalData“The United States, however, is committed to obtaining a long-term resolution to this dispute.
“Accordingly, the United States will begin a new process with the EU in an effort to reach an agreement that will remedy the conduct that harmed the US aviation industry and workers and will ensure a level playing field for US companies.”
The US was authorised in October 2019 by the WTO to take $7.5bn in countermeasures after winning the illegal subsidies for the Airbus consortium dispute against the EU, France, Germany, Spain and the UK.
An EU official was quoted by Reuters as saying: “The commission acknowledges the decision of the US not to exacerbate the ongoing aircraft dispute by increasing tariffs on European products.
“The EU believes that both sides should now build on this decision and intensify their efforts to find a negotiated solution to the ongoing trade irritants.”
Airbus shareholders recently filed a class-action lawsuit against the company over securities fraud.
