“The American trade stick is on the German French jam!” The U.S. trade representative’s office announced on the 12th that the US would adjust the list of EU imports of US $7.5 billion, which was previously subject to tariffs, by removing some goods from Britain and Greece and replacing them with German and French goods with the same trade value, the German news agency reported on the 13th.
the U.S. trade representative’s office said the tariff rate would remain unchanged and the new tariff list would take effect on September 1. Specifically, the United States will impose tariffs on jams from Germany and France, while cheese and biscuits from Britain and Greece will be removed from the US government’s punitive tariff list. U.S. trade representative lethizer said the total value of tariffs remained basically unchanged. In addition, the United States will maintain a 15% tariff on large civil aircraft of Airbus, Europe’s largest aircraft manufacturer, and a 25% tariff on other European goods. At the end of 2019, Washington will be granted the highest penalty of US $8.8 billion on imports of goods in the world. The background is Airbus’s years of illegal subsidies. As a result, the United States formally imposed 25% punitive tariffs on a variety of products from Europe in October last year. The impact includes German and French wines, Italian parmesan cheese and Spanish olive oil.
at the end of June, the US government announced that it was considering imposing new punitive tariffs on products from Germany, France, Spain and the United Kingdom (countries that subsidize Airbus). Lethizer said on Wednesday that the European Union and its Member States had not yet taken the necessary action to comply with the WTO ruling and that the United States was seeking a long-term solution to the dispute.
Airbus deeply regretted this in a statement the same day, “although Europe has taken action to fully comply with the WTO ruling, however, at a time when the aviation industry is experiencing an unprecedented crisis, the US trade representative still decided to maintain the tariff on Airbus aircraft.”
the German weekly Der Spiegel said on the 13th that the European Union recently warned Washington not to change the tariff list, otherwise it would have a negative impact on the economy. In particular, replacing goods affected by tariffs every six months creates uncertainty for companies and causes unnecessary damage on both sides of the Atlantic. EU Trade Commissioner Phil Hogan is in active talks with lethizer to prevent the escalation of trade policy hostility.
“punishment for Germany and France!” Germany’s news television said on the 13th that the United States replaced British and Greek products with German and French products, which has a strong political symbolic significance. This shows who America is a good partner in the EU and who is a bad partner. At present, the United States and Germany have differences on the withdrawal of troops and the “beixi-2” natural gas pipeline project, while France is competing with the United States on digital taxes and other issues. Transatlantic relations are increasingly far from reconciliation. In 2004, the United States filed a lawsuit with the WTO, accusing the EU of providing illegal subsidies to Airbus in various forms. The European Union later sued the U.S. government for illegal subsidies to Boeing. At present, the WTO is still trying the European Union’s charges against the United States. The EU is expected to get approval in the autumn to start imposing tariffs on US goods.