US proposes new tariffs on EU products over Airbus subsidies

SAN FRANCISCO: The US on Tuesday threatened to impose tariff counter measures of up to USD 11.2 billion on a host of European products in response to subsidies received by aircraft maker Airbus.

In a statement, the office of the US Trade Representative (USTR) said the World Trade Organization (WTO) had repeatedly found that EU subsidies to Airbus have caused adverse effects to the United States.

"This case has been in litigation for 14 years, and the time has come for action," said US Trade Representative Robert Lighthizer.

"Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft.

When the EU ends these harmful subsidies, the additional US duties imposed in response can be lifted.

" The statement added that the final amount it would seek in duties was subject to arbitration at the WTO, the result of which was expected this summer.

The USTR's preliminary list extends to 14 pages and contains a number of products in the civil aviation sector, including Airbus aircraft.