EU To Impose Tariffs On US $4 Billion Imports

The United States is disappointed by the EU's decision to impose tariffs on US $4 billion worth of imports annually.

In a statement on November 9, 2020, the European Commission said that since the United States has not yet provided a basis for the negotiation to reach a settlement, including the World Trade Organization (WTO) ruling on illegal subsidies to EU Airbus, the United States has not cancelled the punitive tariff on EU imports to the United States, so EU member states have agreed to take countermeasures.

Currently, ready to wear products are not on the list, but include handbags and travel bags, as well as cotton and cotton waste.

Back in 2018, the EU imposed a 25% punitive tariff on US $7.5 billion worth of products (including jeans) in order to counter the US tariff on EU steel and aluminum products. At present, these tariffs have not been cancelled.

According to the two WTO decisions on aircraft subsidies, both the United States and the European Union have imposed considerable tariffs.

Eco Valdis dombrovskis, executive vice president and Trade Commissioner of nomy that works for people, said: "we have always made it clear that we want to solve this long-standing problem. Unfortunately, due to the lack of progress in our relations with the United States, we have no choice but to take these measures. Therefore, according to the recent WTO ruling, the EU is exercising its legitimate rights. We call on the United States to agree that both sides will abandon the existing countermeasures that will come into effect, which we can forget. Especially in the case of severe economic damage caused by new crown pneumonia, it is a win-win situation for both parties to cancel these tariffs. We now have the opportunity to restart transatlantic cooperation and strive to achieve common goals. 」

A group of 13 European associations, representing industries threatened or hit by potential US tariffs, including the European apparel and Textile Federation (Euratex), jointly called on the EU and the us to ease the dispute.

On the contrary, there is no direct solution to the aircraft industry that they want to stop.

"The United States is disappointed with the actions taken by the European Union on the 10th," Robert Lighthizer, the US trade representative, said in a statement on November 9. The so-called subsidy to Boeing was abolished seven months ago. The EU announced its commitment to WTO rules. But according to the information released on the 10th, they will only do so if it is convenient for them. 」