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US to gain US$7.5 billion in sanctions from EU in WTO Airbus ruling

The World Trade Organisation (WTO) has approved of an American plan to impose tariffs on as much as US$7

US to gain US$7.5 billion in sanctions from EU in WTO Airbus ruling

The World Trade Organisation (WTO) has approved of an American plan to impose tariffs on as much as US$7

04 October 2019 - 19:00

The World Trade Organisation (WTO) has approved of an American plan to impose tariffs on as much as US$7.5 billion worth of European exports in retaliation for illegal government aid to Airbus, reports Bloomberg.

The award is the largest in WTO history - nearly twice as big as the previous record of $4.04 billion set in 2002.



The ruling is a milestone in the WTO's longest-running dispute that will further test transatlantic relations, which have deteriorated under President Trump's 'America First' trade policy.



The WTO ruling is one of the final hurdles before the US can announce which products from the European Union it will target with tariffs selected from an initial list that includes Airbus planes and parts, wine and spirits produced by LVMH, Remy Cointreau, Pernod Ricard and Diageo PLC Leather from Christian Dior SE and Hermes International.



The new tariffs can take effect after the WTO adopts the report, which is expected to happen at a meeting in Geneva this month.



The Donald Trump administration is considering a particularly damaging trade weapon known as 'carousel' retaliation, which would enable the US to regularly shift around the targeted goods, people familiar with the deliberations said last month. That would increase trade uncertainty and pain for European businesses.



The EU will retaliate against any Airbus-linked tariffs when the WTO rules early next year on the bloc's dispute over US subsidies to Boeing, according to European Trade Commissioner Cecilia Malmstrom.


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